Secured Deposits And Withdrawals

🚀 Secured Deposits

When a user deposits Bitcoin assets on AILayer, the assets are received by the cross-chain bridge wallet address on the Bitcoin network. In the OP_Return scripting operation, the EVM address of AILayer is inscribed, ensuring seamless identification.

🔗 Syncing and Validation

• The block header and bridge transaction information are synced through BTC Light nodes.

• Light nodes validate transactions by connecting to a full validator set, providing the necessary data to confirm that a transaction has been included in a block.

🔒 Combining Schnorr Signatures and VRF

• We utilize a combined Schnorr Signature and VRF (Verifiable Random Functions) process.

• Schnorr signatures offer a simple and efficient method for signing data, ensuring authenticity and integrity.

• VRFs generate random outputs that can be publicly verified, adding an extra layer of security.

🔍 Generating Proof of Deposit

• A VRF is employed to generate a random and verifiable output, used to create a proof of deposit.

• This proof, signed with a Schnorr signature, guarantees the deposit information is genuine and tamper-proof.

• The signed proof is then broadcast to the AILayer network.

✅ Verification and Minting

• Validators on the AILayer network verify the Schnorr signature and the VRF proof to confirm the legitimacy of the deposit.

• Once verified, the equivalent amount of Bitcoin assets is minted on the AILayer network and sent to the user’s EVM address.

By combining advanced cryptographic techniques with efficient cross-chain syncing, AILayer ensures a secure and transparent cross-bridge transfer. 🌐🔐

💸 Withdrawals

When a user withdraws Bitcoin assets from AILayer back to the Bitcoin network, the process ensures security and transparency.

🔁 Request and Validation

• The withdrawal request enters a full validator set that is synced with DHC (Dynamic Hidden Committee).

• DHC follows a decentralized signature scheme, utilizing its underlying private key to sign cross-chain messages.

🔏 Decentralized Signature Scheme

• The DHC yields signatures as on-chain verifiable "claims" to indicate the validity of cross-chain messages.

• These claims ensure that the withdrawal request is authentic and has not been tampered with.

🏦 Claiming Bitcoin Assets

• After the signature stage, the user can claim their Bitcoin assets on the Bitcoin network.

By integrating advanced cryptographic techniques and a robust validator set, AILayer provides a secure and efficient method for withdrawing assets. 🌐🔐