Inside the system that improves the circulation of digital currency across the border

Links table

Abstract and 1. Introduction

2. background

   2.1 Layer-2 Blockchains

   2.2 Mariana project

3. Work and related contribution

4. The structure of the system

5. model

   5.1 Automated market makers

   5.2 Price effect

6. simulation

   6.1 data and teachers

   6.2 Results

7. discussion

8. Conclusions, estimates and references

Graphics and tables

4 system structure

This paper proposes a new approach to facilitating the exchange of CBDCS across the border through the Rollup (a form of L2 Blockchain) on the Public Summer 1 network, and is more reinforced with layer 3 (L3), as shown in Figure 3.

Blockchain and VM type. The system works as the L2 Blockchain group on the public L1 network, and it benefits from the inherent security and L1 infrastructure, including consensus and mining/auditors’ mechanisms. Bitcoin, ethereum or other L1 networks can be the basic L1. The system also merges virtual devices (VMS) to implement smart contracts, with ethereum virtual

The device (EVM) is our chosen VM because of its compatibility with most Defi protocols.

L2 and L3S responsibilities. L2 is a data integration layer and its operations are managed by central institutions such as BIS, with a focus on interconnection with other CBDC groups and facilitating communication between L2 and L3s. The system supports several independent L3 groups, each with the authority to determine the deployment of decentralized stock exchanges (DEX) and automated market makers (AMM). Moreover, the spread of other Defi protocols is possible in this framework. The AMM and Exchange of L3s are transferred to external entities that compete with each other.

The privacy of treatment and compliance. Special L2 and L3 Blockchains are (covered networks). All participants should submit to Kyc [24] Procedures before entering the system. This ensures that the system can maintain the privacy of full transactions, for example by taking advantage of the technology of proofs, zero knowledge [15]With commitment to organizational requirements.

Storage proof. We suggest using evidence of storage protocols to enhance security, instead of bridges. Unlike bridges that often involve confidence and central assumptions, the system uses an approach to storage. CBDC distinctive symbols are deported directly on L2, and storage proof protocols depend on the distinctive code reserves corresponding to the country’s CBDC groups.

L3s -based router router. At the core of the system there is a bases -based router host on L2. The router uses these rules to select the optimal AMM-DEX and L3 for traders at any specific moment. Trading fees depend on gas costs and trade expenses, and the router improves these parameters for each trade.

Integration with Defi on Ethereum. To ensure compatibility with regulations, the system integrates with Defi through privacy gatherings on Ethereum Blockchain, suggested by Busher Et Al.[11]. It is only allowed for identification files and users who have been validated through these complexes to exchange CBDCS, with no additional restrictions or restrictions imposed.

Compared to the Mariana project. The main discrimination is its flexibility regarding AMMS, allowing external operators to make decisions on the types of AMMS or the central limit orders they want to run on L3. L3S operators reserve control of procedures and Defi protocols within their layers. Another feature of the L2 system with L3 improvements is to improve cost and resist network congestion. The L2 router automatically directs traders to L3 AMM-DEX with the lowest trade and gas fees.