The Technology Of CWAP
Penalty Adjudication for Cross-chain Transactions (PACT) is a mechanism designed by Coinweb for secure, low-cost cross-chain transactions, optimized for short- and medium-term state machines with defined value at risk (VaR). PACT avoids the central points of failure typical in traditional bridges, enhancing overall security.
Coinweb
Coinweb is the world’s first hybrid between a cross-chain system and a cross-chain rollup. It has full L1 & L2 data availability and is consensusless.
Reactive Smart Contracts
A smart contract that can self-initiate based on any blockchain event, runs indefinitely and is completely blockchain agnostic.
Chain Transaction Sentinels (CTs)
Reactive smart contracts that monitor state transitions on blockchains and gather proof of events. Gathers observations that are shared with PA.
Penalty Adjudicator (PA)
A smart contract that gathers proof from CTS to determine if the PACT terms were met and assign blame if not.
How PACT Is Used On CWAP
Blockchains
Coinweb's L2
Application
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Participant
(Retail / MM)
User
(Retail / Institutions)
dApp
Collateral
Chain Transaction Sentinel (CTs)
(Reactive SC)
Chain Transaction Sentinel (CTs)
(Reactive SC)
Transaction 2
(Blockchain B)
Transaction 1
(Blockchain A)
Observed Event
Observed Event
Acts on Blockchain
Acts on Blockchain
Observation
Observation
Collateral Released
If Needed
Penalty Adjudicator (PA)
(Smart Contract)
Swap
CWAP is used by two types of users: normal users performing asset swaps and participants providing liquidity/collateral for the DEX. Participants can use the dApp or connect through APIs.
CTs are monitoring the swap on L1s and are providing data to PA to make sure the PACTs were followed. If the PACTs were not followed the PA assigns blame and releases collateral to the faulted party.
The swaps are performed by users and only voted on by the consensus of the specific blockchains. These transactions are monitored by the CTs of the PACTs. No voting on a bridge is necessary to confirm the swap.
The Role Of $CWEB In CWAP
Coinweb's native token CWEB, plays a fundamental role in the ecosystem by providing the essential economic framework and operational support for CWAP and its token.