LD2’s procedure for handling cross-chain balances relies on the same internal control structure implemented on the primary blockchain. All cross-chain balances first exist (deposited, audited, and issued) on the primary blockchain before being issued on the secondary blockchain. The secondary-chain depository, auditor, and issuer roles are fulfilled by a single entity, as all secondary-chain assets simply represent primary-chain assets that are already properly deposited, audited, and issued. Most importantly, within this process:
- Physical assets never leave the vault (except during the physical asset redemption process).
- Vault examination wallet signatures apply to all primary chain assets represented on secondary blockchains.
- All balances can be verified cross-chain by anyone using a third-party block explorer and can be attested to by the vault examiner, if necessary.
To prepare for the cross-chain transfer, the custodian (preferably the depository or their delegate):
- Creates a secure storage wallet and associated private key on the primary blockchain
- Is assigned as Issuer, Auditor, and Depository on the secondary blockchain smart contract
- Signs a message with the primary chain account indicating the authority over secondary-chain key pairs
- Publicly posts the signed and verifiable message on the LD2 website
Anyone can then verify the custodial balances on both the primary and secondary blockchains:
- Verify the gross balance of the primary chain secure storage wallet equals or exceeds the issued, deposited, and audited assets on the secondary chain.
- Verify the signed message that documents the primary-chain account’s authority over secondary-chain keypairs
- Verify the public keys in the message have been assigned Issuer, Auditor, and Depository authority on the secondary blockchain
DEPOSITORY DELEGATE ADDRESS
This Ethereum account maintains authority over the WAX and EOS blockchain account theld2coinio (https://wax.bloks.io/account/theld2coinio) via the key pairs represented by the following public keys:
Any transaction signed by the above keys on either the WAX or EOS blockchains carries with it the authority of this Ethereum account.
In order to verify the authenticity of this message, copy the code block below, then visit the site https://app.mycrypto.com/verify-message, paste in the message, and finally click the “Verify Message” button. You may also choose to verify the message in another tool of your choice (MyEtherWallet, etc.), but note that some verification tools such as EtherScan are not compatible with signed plain text messages. This is not an issue with the message or signature, but rather the method by which these tools sign/verify the message itself.