Architecture for Stablecoins with Cross-Chain Interoperability

Éric Machado, Juliana Bezerra, Celso Hirata

2024

Abstract

Blockchain is the enabling technology that implements the operations of cryptocurrencies. Stablecoin is a type of cryptocurrency designed to reduce price volatility. This stability is achieved by tethering the value of the stablecoin to a reserve of assets, often in the form of a fiat currency like the US dollar. Implementing a stable-coin involves various technical challenges related to the design and architecture, which include smart contract complexity and cross-chain interoperability. This work presents an architecture for the backend of stablecoin services that address these two challenges. In the architecture, the bridge component enables seamless cross-chain interoperability, allowing to move of stablecoins from one blockchain to another without the need to be reverted to fiat currency. We developed a proof of concept, using the stablecoins deployed on both Ethereum and Polygon testnets. The proof of concept demonstrated that the architecture offers a design reference to implement other similar stablecoin systems.

Paper Citation

in Harvard Style

Machado É., Bezerra J. and Hirata C. (2024). Architecture for Stablecoins with Cross-Chain Interoperability. In Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 1: ICEIS; ISBN 978-989-758-692-7, SciTePress, pages 273-280. DOI: 10.5220/0012628300003690

in Bibtex Style

@conference{iceis24,
author={Éric Machado and Juliana Bezerra and Celso Hirata},
title={Architecture for Stablecoins with Cross-Chain Interoperability},
booktitle={Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 1: ICEIS},
year={2024},
pages={273-280},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012628300003690},
isbn={978-989-758-692-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 26th International Conference on Enterprise Information Systems - Volume 1: ICEIS
TI - Architecture for Stablecoins with Cross-Chain Interoperability
SN - 978-989-758-692-7
AU - Machado É.
AU - Bezerra J.
AU - Hirata C.
PY - 2024
SP - 273
EP - 280
DO - 10.5220/0012628300003690
PB - SciTePress