Mu Changchun: The currency bridge blockchain is the core of the currency bridge technology architecture, and the underlying layer adopts the Da Sheng Consensus

We have built a technical system for the Currency Bridge platform, with the core being a blockchain specifically developed for the currency bridge: the Currency Bridge blockchain. "On November 2, Mu Changchun from the Digital Currency Research Institute of the People's Bank of China stated at the Currency Bridge Symposium of Hong Kong Science and Technology Week that the Currency Bridge blockchain is the core of the currency bridge technology architecture, supporting atomized payment and foreign exchange synchronous settlement business, wallet management, and privacy protection control. The underlying currency bridge blockchain adopts a Byzantine fault-tolerant algorithm, the Great Sage Consensus, aimed at shortening the time required to reach consensus between nodes and improving overall protocol performance and efficiency.

At the meeting, Mu Changchun also introduced the privacy architecture design of Currency Bridge. The Currency Bridge platform implements privacy control over core transaction data such as the identities of the payer and payee, transaction amounts, and CBDC contracts invoked. Through a pseudonym mechanism implemented by randomly generated key pairs, the currency bridge platform ensures that for a single cross-border transaction, only the counterparty and corresponding central bank/currency authorities can understand the transaction details.

Last year, the Digital Currency Research Institute of the People's Bank of China (hereinafter referred to as "the Institute") and Tsinghua University publicly released the Blockchain Dashing protocol, which can solve the four party problem of consensus algorithms. After more than a year of development, the Da Sheng Agreement has been implemented and applied in financial infrastructure such as the multilateral central bank digital currency bridge project and the central bank trade finance blockchain platform.

The Multilateral Central Bank Digital Currency Bridge project aims to attempt to utilize a public platform based on Distributed Ledger Technology (DLT) for cross-border payments, where multiple central banks can issue and exchange their respective central bank digital currencies. The project is led by the Hong Kong Monetary Authority, the Bank for International Settlements (Hong Kong) Innovation Center, the Central Bank of Thailand, the Digital Currency Research Institute of the People's Bank of China, and the Central Bank of the United Arab Emirates, with support from four subcommittees (technical, legal, policy, and business).

Attached is the full text of Mu Changchun's speech

Good afternoon! I am pleased to participate in this discussion and share with you some of our considerations regarding the technical architecture and privacy architecture design of the multilateral central bank digital currency bridge project.

We have built a technical system for the Currency Bridge platform, with the core being a blockchain specifically developed for Currency Bridge: the Currency Bridge blockchain (mBridgeLedger or mBL). It is the core of the currency bridge technology architecture, supporting atomized payment and foreign exchange synchronous settlement business, wallet management, and privacy protection control. The currency bridge code is fully visible, auditable, testable, and open source among all participating central banks/monetary authorities. The underlying currency bridge blockchain adopts a Byzantine fault-tolerant algorithm, the Great Sage Consensus, aimed at shortening the time required to reach consensus between nodes and improving overall protocol performance and efficiency.

The currency bridge blockchain is composed of nodes from participating central banks/currency authorities and commercial institutions. Each participant manages their own nodes, and all sensitive data such as transaction records and user certificates are stored at their respective nodes, protected through blockchain privacy management mechanisms.

Specifically, the nodes of the central bank/monetary authority serve as validation nodes in the blockchain consensus protocol; As a blockchain synchronization node, nodes of commercial institutions have the same functions as nodes of central banks/monetary authorities, except for not participating in consensus mechanisms.

In addition to currency bridge blockchain node management, the relevant systems of central banks/currency authorities and commercial institution participants also include currency bridge front-end and back-end modules. The front-end provides a user interaction interface, while the back-end performs business logic processing.

Next, I will introduce the privacy architecture design of the currency bridge. The Currency Bridge platform implements privacy control over core transaction data such as the identities of the payer and payee, transaction amounts, and CBDC contracts invoked. Through a pseudonym mechanism implemented by randomly generated key pairs, the currency bridge platform ensures that for a single cross-border transaction, only the counterparty and corresponding central bank/currency authorities can understand the transaction details. For example, a commercial bank in the United Arab Emirates makes payments to a commercial bank in the Hong Kong Special Administrative Region using e-HKD on a currency bridge; The details of the transaction will only be viewed by the payer, payee, UAE Central Bank, and Hong Kong Monetary Authority. For the Bank of Thailand, the People's Bank of China Digital Currency Research Institute, and other participants, they cannot see any sensitive transaction information.

The above is my brief introduction to the technical architecture of the Currency Bridge project. Thank you.