Datachain, Inc. has started collaborating with Hitachi, Ltd. to realize the simultaneous transfer of ERC-20 token on Hyperledger Fabric and ERC-721 token on Hyperledger Besu.

In this initiative, Datachain will issue ERC-20 tokens on Hyperledger Fabric with the advice from Hitachi, which has knowledge of token utilization in Hyperledger’s platforms, and then use YUI, a Hyperledger Lab, and Cross Framework, which Datachain is leading the development of, to interconnect the two blockchains mentioned above and execute transactions on both blockchains simultaneously.

The jointly developed sample codes will be contributed to Hyperledger Foundation. Datachain will continue to work with Hitachi on applying this technology to specific use cases.

Datachain collaborates with Hitachi

Datachain has started a collaboration with Hitachi to implement an atomic swap that simultaneously transfers ERC-20 tokens on Hyperledger Fabric and ERC-721 tokens on Hyperledger Besu.

By using two types of tokens, one compliant with ERC-20, the Fungible Token standard, and the other compliant with ERC-721, the Non-Fungible Token (NFT) standard, this initiative aims to simultaneously execute two transactions: the transfer of rights and payment for tokenized assets.

The sample codes developed by Datachain and Hitachi will be contributed to Hyperledger Foundation, a global, open source collaboration for building enterprise blockchain ecosystems hosted by the Linux Foundation.

Details of The Joint Development

In this joint development, we will prepare two blockchains, Hyperledger Fabric and Hyperledger Besu, frequently used as enterprise blockchains.

We will then use the IBC Module, a component of YUI, to place modules on both Hyperledger Fabric and Hyperledger Besu blockchains to validate each other’s transactions.

In addition, we issue an ERC-20 token on Hyperledger Fabric, and an ERC-721 compliant NFT token on Hyperledger Besu.

In this environment, Cross Framework provided by Datachain as OSS can be used to simultaneously execute asset transfer transactions on each blockchain and achieve atomic swap.

The Cross Framework used in this development is a framework to enable the execution of cross-chain smart contracts. For more information about Cross Framework, please refer to the following links.

https://medium.com/@datachain/cross-framework-introduction-f25d7bbfcd9a

https://github.com/datachainlab/cross

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Previously, Cross Framework required exclusive locking of token balances on each blockchain, making transactions inefficient. However, with the CDT (Conflict-free Data Type) extension, it is now possible to conduct transactions across blockchains in concurrency without necessarily locking the token balances.

CDT is a library developed by Datachain that provides a data structure that can be read and written in concurrency in distributed transactions.

https://github.com/datachainlab/cross-cdt

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For transaction verification, we will adopt a scalable architecture in anticipation of the addition of new blockchain networks.

Future Plans

In the future, Datachain will utilize the knowledge gained through this initiative and consider applying it to specific business use cases in collaboration with Hitachi.

In addition, we will continue to contribute to the community to promote the practical use of blockchain technology, including the contribution to Hyperledger Foundation that is planned for this initiative.

Message from Kei Fukuta, Director, Blockchain Solution Dept., Software CoE, Hitachi, Ltd., and Hyperledger Foundation Governing Board Member:

Hitachi is continuing to work on cross-industrial collaboration by blockchain for development of the digital society.

In order for the blockchain to be widely used and established as a social infrastructure, it is essential to establish interoperability technology. We believe that this demonstration experiment will be very effective for the practical application of decentralized (relay) technology in terms of performance and scalability therefore we are glad to jointly demonstrate with Datachain, a company with advanced technological capabilities and a lot of experience in this field.

As a Hyperledger Foundation premier member, Hitachi has participated in the development and open-sourcing of blockchain infrastructure technology, and has commercialized this technology as the platform’s managed service, Hitachi Blockchain Service for Hyperledger Fabric. We believe that our experience will be useful in this demonstration experiment.

Hitachi contributes to the development of the blockchain technology in the future and makes use of the knowledge in the wide business domain and will wrestle for the creation of the service to tie the cross-industry, and to solve social problems.

Director, Blockchain Solution Dept., Software CoE, Hitachi, Ltd.
Hyperledger Foundation Governing Board Member
Kei Fukuta

What is YUI, a Hyperledger Lab?

YUI is a Hyperledger Lab being developed to achieve interoperability between multiple heterogeneous blockchain platforms through IBC. As YUI adopts IBC, it enables different blockchains to communicate with each other without trust in any third-party intermediaries.

YUI supports major enterprise blockchains such as Hyperledger Fabric, Hyperledger Besu, and Corda. Support for Ethereum and Hyperledger Iroha, which has been adopted by many digital currency projects such as Cambodia’s CBDC “Bakong,” is also currently underway.

For more information about YUI, a Hyperledger Lab, please visit the link below.

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