STEM: Secure Token Exchange Mechanisms

Abstract

With the flooding of a large variety of isolated blockchain solutions into the technological world, one major challenge is to enable efficient interoperable interchain and intrachain exchanges. The dearth of inter-operating among these eclectic tokens is hindering the profits that can be earned by potential investors. The myriads of tokens that are flooding into the blockchain ecosystem need to interoperate amongst each other. This paper proposes a mechanism to provide better atomic intrachain token swaps. Our blockchain solution can assist the exchange of these eclectic heterogeneous tokens securely, using digital signatures and hashed time lock contracts, which reduces the problem of interoperability. This paper presents a solution which is token standard agnostic and provides effective intrinsic smart contracts facilitating token exchange and thus reducing the counterparty risk.