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2 BUILD SOFTWARE TO TEST SOFTWARE
SWIFT Hackathon 2022 - Business Challenge Articulation
1. The Challenge
What is the core challenge you believe your solution will solve? Where is the problem seen? Why is this challenge important? What is the problem magnitude? Why does it need to be solved
now?
3. Reusability/Scalability
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How can the techniques implemented in your solution be extended to other use cases / industry challenges? How scalable is your solution in terms of computational
complexity? What challenges may arise in order to achieve this on a wider scale?
2. Business Opportunity
What is the business opportunity derived from solving this solution? (both for yourself and Swift)
DLT is rapidly claiming its place in the global fintech landscape, penetrating the most critical industry use cases. The multitude of DLT frameworks
available brings not only the promise of more financial freedom, but also the challenge of harmonising them from the technical, as well as the regulatory
standpoint, to truly guarantee transaction security and transparency. If not taken into account, these aspects could result in DLT jeopardising the payments
ecosystems both nationally and internationally. Setting up a single inter-DLT framework seems like a viable solution to address the risks and allow more
users to access the technology.
Our proposed cross-chain swap platform represents a new DLT-based payments ecosystem with the “inter-token” (interoperable token) at its heart.
Inter-token is tradable across all blockchains that are part of the ecosystem and can be traded freely within the ecosystem in a single transaction. In
contrast to the current widespread implementations of cross-chain payments, having a trusted ecosystem eliminates the need for using Hashed Timelock
Contracts (HTLC) and having to mitigate the associated drawbacks.
A unified platform would help increase transaction speed, streamline national and cross-border payments, and reduce end-user costs of maintaining
separate accounts on separate blockchain implementations, among other benefits.
The main challenge in the implementation is the necessity to set up the “inter-currency”, i.e. network-specific “inter-tokens” that circulate on par with the
native tokens on each blockchain-partner of the ecosystem. “Inter-token” liquidity balancing would also have to be set up. The system can be scaled to as
many blockchain partners as is needed and – performance-wise – is only limited by the original networks. An ecosystem of 3 networks is demonstrated in
our architecture, but the “universal payment system” approach can be applied further to 1) more networks and 2) more use cases, such as building an
interoperable supply-chain platform.
Organisation: Exactpro
Challenge 1 - Interoperability