CLASSZZ: SECURE MULTI-TOKEN TRANSACTIONS
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April 26th, 2022

We have discussed in detail the ClassZZ main net and the protocol it uses, as well as the advantage of the main net built to achieve unbounded scalability. In discussing tokens, we understood that the ClassZZ main net facilitates the transfers and transactions of native tokens. This is what will be referred to in this discussion.

It is imperative to understand that token transactions are done online via a blockchain network. For the ClassZZ main net, we understood previously that the main net can ensure transactions and exchanges with native tokens under a decentralized and permissionless platform. ClassZZ makes use of the Te Waka protocol which is the world’s first decentralized cross-chain protocol for native tokens and is been proposed as the industry norm for cross-chain transactions.

The blockchain space as we know it has entered into a multi-chain era. A major advantage of blockchain technology is that it enables multi-token transactions. The compatibility between blockchains makes it easy for tokens to be transferred with ease across various blockchains. This recap is necessary for further discussions today.

We will look at tokens and the $CZZ Token.

Tokens are either native to a blockchain protocol or deployed on top of an existing blockchain protocol via user-generated logic at the smart contract layer.

A token is essentially a digital asset securely stored on the blockchain. Tokens are most often known to be cryptocurrencies such as Bitcoin or Ether tokens. For ClassZZ main net, the token used is known as $CZZ Token. The $CZZ tokens are created as part of the ClassZZ main net platform that is built on an existing blockchain.

The $CZZ Token represents a tradable asset that resides on its blockchain.

MAJOR POINTS TO NOTE ABOUT THE $CZZ TOKEN

·         $CZZ Token is an asset used on the ClassZZ main net.

·         It can be used for transaction and investment purposes.

·         Consensus: Proof of work

·         Users would hold $CZZ Tokens on the main net as a store of value while making transactions using mainly mapped tokens.

Token transfers can be achieved without any permission being required or with protocol-defined rules and allowed lists that restrict the pool of eligible receiving addresses. For example, it can be possible to have third parties place transfer restrictions or hold. Sending fungible tokens to other blockchain addresses allows one-time payments or recurring payments. Manually transferring tokens to well-known burner addresses, which are computationally near impossible for anyone to own, is equivalent to renouncing or destroying the ownership of the tokens in a verifiable way as the transaction provides proof of ownership renunciation. Tokens can also be transferred to smart contracts for collateralization and staking with redemption value though the smart contracts may need to implement functions that allow the tokens to be transferred out or else they may be permanently locked up.

Let us discuss multi-token transactions a little deeper.

One of the interesting things about blockchain technology is its decentralized nature. This ensures the security and immutability of data, trust, and control by users of a blockchain main net. It is highly possible to perform multi-token transactions.

Multi token transactions simply describe exchanges of different tokens made over a blockchain main net. This ensures easy trading and transactions over different token types. Multi token transactions in the form of transfers can be done by doing all transfers in a contract function and then executing that function in a single transaction.

The secure multi-token transaction is a process of transferring, managing, and making payments using any combination of multiple token types at once without challenges of the security posed.

Multi token transactions are meant to be secure and done over a trustless, universal, permissionless, and decentralized network. The interface on which this transaction takes place should not be traced or hacked into. It should be a standard interface for contracts that can manage multiple token types. A single deployed contract may include any combination of fungible tokens, non-fungible tokens, or other configurations.

The idea of having a secure multi-token transaction cannot be achieved if the multi-token standard is not designed to be secured. The idea is simple and seeks to create a smart contract interface that can represent and control any number of fungible and non-fungible token types.

Ways to ensure the security of multi-token transactions are multilevel:

·         At the base layer, blockchain networks and consensus models have varying security, immutability, scalability, and functionality levels.

·         At the custody management level, users must hold and manage their private keys securely to avoid tokens being lost or stolen as well as carefully review transactions before signing them. Recoverability techniques must be assessed to meet individual needs.

·         At the smart contract layer, external data sources can be attacked or add inaccurate data to the blockchain. Smart contracts can also be subject to different types of security bugs and transaction-ordering attacks, which can lead to the loss of staked tokens, fraudulent transactions, manipulation of protocol governance, and freezing of some key protocol components. Security analysis, audits, and formal verification by reputable entities and public bug bounty programs can help identify and mitigate smart contract security risks.

·         Protocol governance itself also involves risks, such as those related to administrative privileges being stolen or misused or, more generally, those related to behaviors that undermine confidence and game-theoretic attacks. Multi-signature schemes and delays are often used as preventive measures.

Protocols that enable financial instruments have specific risks, such as liquidation risk and, more generally, collateral management risks. Re-collateralization schemes at the protocol level (e.g., protocol-native tokens serving as backstops), as well as hedging and mutualized insurance schemes at the user level, may help mitigate these risks.

The nature of the design of the ClassZZ main net ensures that the transactions done on it are secure. This includes the security of multi-token transactions. The emphasis is on the security of the transactions done using more than one token.

ClassZZ main net ensures that a multi-token transaction is secure when a consensus mechanism validates and agrees upon all token transactions within the blocks, ensuring that each transaction is true and correct. The ClassZZ main net offers an innovative approach to storing information, executing token transactions, performing functions, and establishing trust in an open environment.

Using the Te Waka protocol, a smart contract, and an unbounded scalability advantage, the security of the multi-token transactions on the ClassZZ main net platform is achievable.

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