Enjin Blockchain is preparing to support stablecoins, including USDC (USD Coin, issued by Circle) and USDT (Tether) through its MultiToken Pallet and the Hyperbridge protocol. This integration is currently live on Hyperbridge’s testnet.
The Enjin MultiToken Pallet is a core component of Enjin Blockchain, providing the infrastructure for the creation, management, and transfer of multiple types of tokens, from unique or 1:1 non-fungible tokens (NFTs) to tokens with large or infinite allowed copies. The MultiToken Pallet implements Enjin’s multi-token standard, which is compatible with different types of chains such as matrixchains.
The MultiToken Pallet serves as the foundation for other Enjin Blockchain features, such as the on-chain marketplace and guaranteed royalty functions, minting and infusion of Enjin Coin (ENJ) into NFTs, as well as interaction with the APIs (Application Programming Interfaces) and SDKs (Software Development Kits) that build the foundation of the Enjin Platform, which provides seamless integration of Enjin Blockchain into video games, apps and dApps.
A pallet is a modular, reusable component in Substrate-based blockchains (such as Enjin Blockchain) that encapsulates specific blockchain functionality, with the MultiToken Pallet being one of Enjin Blockchain’s central pallets. Developers combine multiple pallets to compose the full runtime logic of a blockchain, allowing for rapid prototyping and customization without rebuilding core components.
Hyperbridge is a decentralized, permissionless interoperability protocol designed to facilitate secure and efficient communication between disparate blockchain networks. Developed by Polytope Labs and backed by the Web3 Foundation and Scytale Digital, Hyperbridge operates as an "interoperability coprocessor," leveraging cryptographic consensus and state proofs to enable trustless cross-chain transactions. This interoperability coprocessor model, using off-chain computation of complex tasks and on-chain verification through cryptographic proofs, allows a user to place a digital asset such as USDC or USDT on Ethereum or Binance Smart Chain into Hyperbridge’s vault then use a corresponding asset that is a MultiToken on Enjin Blockchain, with Hyperbridge ensuring the asset is not doubled and remains 1:1.
Assume a user has USDC (ERC-20) on Ethereum mainnet. This token cannot be directly transferred to Enjin Blockchain because the chain is Substrate and not Ethereum-based, and does not support native USDC.
The user would prepare to use Hyperbridge by sending the USDC to a “vault,” a designated Hyperbridge smart contract (or a gateway contract) on Ethereum. The USDC is locked in this Ethereum vault, which facilitates the subsequent cross-chain messaging.
Locking the original token in a Hyperbridge vault takes place in a decentralized, user directed manner in Hyperbridge smart contracts on the original chain (in this case Ethereum), with no involvement from any Enjin Blockchain function, app or platform.
Hyperbridge permissionless relayers independently detect the above token locking. These relayers extract the necessary state data from the blockchain (ex. transaction hash, event log, block header), generate a cryptographic proof (ex. Merkle proof) that attests to the fact of the locking event, and submit proofs to the Hyperbridge Nexus. This Nexus acts as the consensus layer for verifying cross-chain messages.
Please note that the vault smart contracts do not generate the above proofs or transmit or verify cross-chain messages. These function solely to lock the original token. Further, the user does not direct the above relayers or Nexus, which function independently after detecting the locking event. Importantly, the above relayers and Nexus in this example are not part of Ethereum or Enjin Blockchain, but act as a decentralized intermediate proxy layer communicating with both.
multitoken.transfer(id, amount);
multitoken.balance_of(owner, id);
After receiving the above proof for the Ethereum locking event, Hyperbridge Nexus publishes a message which will be detected by corresponding permissionless relayers for Enjin Blockchain. These then call the MultiToken pallet and direct the minting of an Enjin multitoken on Enjin Matrixchain that is a counterpart of the token locked in the Ethereum vault. This USDC multitoken is credited in the user’s designated Enjin Blockchain substrate account, and can then be transferred and used within the Enjin ecosystem like any other multitoken.
Various games and platforms on Enjin Blockchain may be configured to recognize and use this multitoken and, in this case, recognize that the multitoken as a stablecoin intended to have a US$1 pegged value. These games and platforms typically have NFT and other functions on Enjin Matrixchain.
Although this example uses USDC (ERC-20), one visualizes how the above process may later be extended to other token types, such as Ethereum NFTs. Such cross-chain token integrations may be conducted by Hyperbridge or other similar platforms, demonstrating Enjin Blockchain’s composability and decentralization. Locking the token on the original chain and minting the multitoken counterpart on Enjin Blockchain are both publicly verifiable and readily audited.
Finally, to retrieve the original token, the user would burn the multitoken that exists on Enjin Blockchain and cause a relayer to generate a proof of this event and submit this to the Nexus. A relayer then forwards this proof on Ethereum to the vault to trigger the unlock of the original token. The burning may be done on-chain, or through various visual user interfaces.
Please note that the above steps are decentralized user-directed steps using the Hyperbridge Nexus, vaults and relayers, which in turn direct functions in the chains involved (in this case, Ethereum and Enjin Blockchain). Users are encouraged to separately confirm that the type and units of multitokens minted and any original tokens unlocked are correct, and monitor support messages and updates (including security audits) from Hyperbridge (and other platforms used). This is particularly encouraged when bridging larger units of tokens.
For further queries, please contact Hyperbridge or:
Oscar Franklin Tan, Chief Financial Officer and Chief Legal Officer, Atlas Development Services (a core contributor to Enjin Blockchain)
Rene Stefancic, Chief Operating Officer, Atlas Development Services (a core contributor to Enjin Blockchain)
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