RBHLT: A High Liquidity Technology for Non-fungible Token

Abstract

Blockchain-based implementations of non-fungible tokens represent ownership of specific digital objects and are indivisible, irreplaceable and unique. However, there are currently two problems: 1) Due to the low throughput rate of the blockchain system, it cannot meet the needs of large-scale scenarios of non-fungible tokens assets. As the core technology of blockchain scaling, Layer2 has become an important factor affecting the performance of blockchain. 2) The current liquidity mechanism of non-fungible tokens greatly limits its liquidity. Therefore, this paper combines cryptographic zero-knowledge proof technology with off-chain scaling technology to design and implement a system architecture that can significantly improve the liquidity of non-fungible tokens. Firstly, this paper proposes a zk-rollup based off-chain scaling architecture RBHLT, on top of which a high liquidity protocol for non-fungible tokens is implemented. Analysis and experimental results show that RBHLT enables higher liquidity of non-fungible tokens while reducing transaction costs.