Bridge Protocol

The Bridge Protocol facilitates the conversion between Wrapped ZCN (WZCN), an ERC-20 token on Ethereum, and Züs Coin (ZCN), the native token of the Züs blockchain.

This process ensures a seamless and trustless transfer of assets between two blockchain ecosystems using a burn-and-mint mechanism, with verification and authorization handled by the Authorizer node.

The protocol ensures security through asymmetric key encryption, smart contract validation, and a structured reward-and-penalty mechanism for Authorizers.

Key Processes in the Bridge Protocol

1. Signing Burn and Mint Tickets

The Bridge Protocol operates based on burn and mint tickets, which serve as proofs of token conversion:

• Burn Tickets (WZCN → ZCN)

  • When a user wants to convert WZCN (Ethereum) to ZCN (Züs), they initiate a burn transaction on the Ethereum blockchain.

  • This generates a burn ticket, which is sent to an Authorizer node.

  • The Authorizer node verifies the transaction and signs the burn ticket.

• Mint Tickets (ZCN → WZCN)

  • When a user wants to convert ZCN (Züs) back to WZCN (Ethereum), they burn ZCN on the Züs blockchain.

  • This action generates a mint ticket, which must be signed by the Authorizer node before minting WZCN on Ethereum.

2. Validation Process

The Authorizer node plays a critical role in ensuring the validity of token conversions:

• Burn Ticket Validation

  • The Authorizer node verifies that WZCN tokens have been burned on Ethereum.

  • The node checks the Ethereum smart contract to confirm that the burn transaction is recorded.

  • Once validated, the Authorizer signs the burn ticket.

• Mint Ticket Validation

  • For mint tickets, the Authorizer node ensures that ZCN tokens have been burned on the Züs blockchain.

  • The node verifies the burn event in the Züs smart contract.

  • If verified, the Authorizer signs the mint ticket, allowing the minting of new WZCN on Ethereum.

3. Asymmetric Key Encryption & Ticket Signing

• The Authorizer node signs burn and mint tickets using asymmetric key encryption.

• Each signed ticket includes:

  • Burn/Mint transaction details.

  • Authorizer's digital signature (using its private key).

• Smart contracts on Ethereum and Züs can verify the validity of the signed ticket using the Authorizer’s public key.

4. Integration with Smart Contracts

The Bridge Protocol relies on smart contracts for enforcement and tracking:

• Ethereum Smart Contracts

  • Store burn events of WZCN.

  • Validate signed tickets before minting WZCN.

• Züs Smart Contracts

  • Track burn events of ZCN.

  • Verify mint ticket signatures before minting ZCN.

This ensures that every cross-chain transaction is properly recorded and authorized.

5. Reward and Penalty Mechanism

To maintain security and incentivize correctness, the Bridge Protocol implements a reward-and-penalty system:

Rewards

• Authorizer nodes earn rewards for validating and signing tickets.

• Rewards are distributed based on:

  • The number of burn tickets signed (for WZCN → ZCN).

  • The number of mint tickets signed (for ZCN → WZCN).

• Rewards are paid in:

  • ZCN for ZCN mint transactions.

  • ETH for WZCN mint transactions.

Penalties

• If an Authorizer node fails to properly validate a ticket, they may face penalties.

• Penalties include:

  • Loss of staking rewards.

  • Suspension from the Authorizer network for repeated failures.

• This ensures that malicious or careless behavior is discouraged, keeping the protocol secure.