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Arbiters

Arbiters play a vital role in maintaining security and reliability within the BeL2 system.

Main purpose:​

To facilitate the secure transmission of data and proofs between the Bitcoin network and other blockchains.

Software:​

Each node runs a server built on top of the GoFrame framework.

How it works:​

  1. Arbiters operate as decentralized nodes, ensuring reliability and robustness.
  2. They validate cross-chain transaction proofs, maintaining trust in the system.
  3. Arbiters reach consensus on the validity of operations, ensuring consistent decision-making.
  4. Users can request their intervention to resolve disputes promptly.
  5. They help facilitate time-based execution of smart contracts involving Bitcoin

User-Requested Arbitrations:​

  • Users can request arbitrations in specific scenarios, such as when other parties fail to confirm transactions promptly.
  • For example, in a loan application, if the lender doesn’t unlock the BTC after the borrower’s repayment, the borrower can initiate an arbitration process.
  • Arbiters then step in to resolve disputes and unlock the BTC, ensuring fairness and adherence to the agreed-upon terms.

Here is a diagram showing a loan repayment flow with user-requested arbitration.

Arbitrator Node vs Arbitrator Network​

The Arbitrator Node (Arbitrer) is a single process aimed to fulfill a single task while the Arbitrator Network can be seen as Arbitrator Nodes working together in order to fulfill a bigger and more complex task that can be split into many simple subtasks.

By leveraging these core technologies and components, BeL2 creates a robust, secure, and efficient system for integrating Bitcoin with the world of smart contracts and decentralized applications. This opens up a wide range of possibilities for using Bitcoin in complex financial applications while maintaining its fundamental security and decentralization.