OmniBOLT: Facilitates smart assets lightning transactions

• Contact: Neo Carmack([email protected]), Ben Fei([email protected])

Based on the fundamental theory of Lightning network, OmniBOLT specification describes how to enable OmniLayer assets to be circulated via ligtning channels, and how can smart assets benefit from this noval quick payment theory.

In addition, OmniBOLT provides more flexible contracts for upper layer decentralized applications. OmniBOLT daemon is a golang implementation of this specification, an open source, off-chain decentralized platform, build upon BTC/OmniLayer network, implements basic HTLC payment, atomic swap of multi-currencies, and more off-chain contracts on the network of smart assets enabled lightning channels.

Advantages

• Instant payment of smart assets issued on OmniLayer and Etherium(soon future).
• Cross channel atomic swap for various crypto assets.
• Decentralized exchange on top of stable coin enabled lightning channels.
• Collateral Lending Contract and more flexible contracts for various DeFi scenarios based on atomic swap, without any extra cost of transaction fee or any intermediary;
  • Interested readers shall directly go to chapter 6: DEX, Collateral Lending Contract, online store ... to seek more examples.

Why OmniBOLT

Decentralized finance industry requires a much more flexible, extensible and cheaper smart assets circulation solution to solve the main chain scalability problem. Lightning network is a solid technology to this problem. According to the layer-2 protocol BOLT (Basis of Lightning Technology) specification for off-chain bitcoin transfer, we need a protocol to support wider range of assets for upper layer applications: payment, game, finance or scenerios need stable coins.

Meanwhile, Omnilayer is an onchain smart assets issuance technology, which is proven secure and stable. Constructing lightning channels on top of it automatically acquires the ability of issuing assets, temper resistant, and on-chain settlement. This is where OmniBOLT built upon.

How it works:

1. On-chain protocol is Omnilayer, which is the issuance and settlement level;
2. OmniBOLT 2, 3, 4 form the main network protocols;
3. Applications level consists of contracts for various applications;

OmniBOLT itself does not issue tokens. All tokens are issued on Omnilayer, and enter the OmniBOLT network through P2(W)SH backed channels, being locked on the main chain, and can be redeemed on the Omnilayer main chain at any time.

Chapters and Protocol Suite

We not only just list messages and arguments that are used in our implementation, but also complete content that explains why we do so. Most of this spec is strictly follow the rules/logics defined in the lightning white paper. The original paper may be hard to read for our programmers, so we draw some diagrams for better understanding. Hope it helps :-)

OmniBOLT #01: Base Protocol and Terminology

OmniBOLT #02: peer-protocol, Poon-Dryja channel open

OmniBOLT #03: RSMC and OmniLayer Transactions

OmniBOLT #04: HTLC and payment Routing

OmniBOLT #05: Atomic Swap Protocol among Channels

OmniBOLT #06: DEX, Collateral Lending Contract, online store and more applications

OmniBOLT #07: Hierarchical Deterministic (HD) wallet, Invoice Encoding

Technology Guide

OmniBOLT Technology Guide Part I offers quick understanding of the rationale, concepts, architecture of OmniBOLT.

Implementation and API for client applications

Implementation of OmniBOLT specification can be found in this repository OmniBOLT Daemon, as well as the API online documentation can be found here.

Javascript API:. The JS SDK implments a complete set of APIs for HD wallets (required by OmniBOLT #07:) and client applications. It manages pub/priv keys genertion and helps developers automatically fill in the arguments which is hardly to be manually finished.

GUI debugging tool: here.

Contribution

OmniBolt specification is initiated by Omnilayer.foundation. Any proposal, please submit issues in this repo.