COMIT, a cryptographically-secure Off-chain Multi-asset Instant Transaction network, is being planned by the team of TenX, a young company in Singapore trying to make cryptocurrencies spendable. After digesting the tongue-breaking name (I am glad, they found a nice shortcut), let’s take a look on the intention and technology of the project:
Main goal of COMIT is „making global payments as cheap, fast and easy as sending a text message“, or better is to become the Internet of transactions. Actually, the core function of the network appears to allow an interoperability between different blockchains without a third party, managed by an automated protocol, called the COMIT routing protocol.
Key technology to realize instant and cross-chain transactions is the introduction of payment channels, same as I.e. the lightning network is using. These channels are being opened and funded by its participants, then transacting assets off-chain within the channel. Only if funds are being withdrawn or the channel is being closed, assets are transferred on the blockchain from one wallet into another at ones to clear the process.
COMIT is also setting up their protocol on top of the payment channel technology. The interesting part is: If person A opens a channel with person B, whereas person B opens a channel with person C, then A can send assets to C over B as well. Of course only, if B provides enough liquidity. All participants don’t need to know that: The routing protocol is managing the best way in the network automatically and so can connect users and liquidity hubs globally.
This is an illustration from the COMIT whitepaper:
Three parties are part of the network: Users, businesses and liquidity provider, while users pay and businesses are getting paid. Liquidity providers are playing an important role. They provide the funds to exchange between the different blockchain assets. High liquidity is needed here, since, as mentioned before, assets are being transferred only „virtually“ in the channels. The more open channels are existing, the more liquidity is needed to keep the system running.
Three technologies a blockchain needs to provide to be compatible with the COMIT network:
Multi-Signature is necessary to secure funds and to reach consensus in payment channels when transactions need to be validated.
Hash-functions to transmit encrypted data among parties
Time Locks to lock up funds till a future date. Its a basic requirement for trustless payment channels, so nobody can withdraw till permission is received.
Thats the basic concept. More detailed issues are also named in the white paper already, such as double spending protection and to make sure, payment channels are secure and everybody is only in control of the funds, they are actually possessing. Therefore, so called hashed time lock contracts (HTLCs) are being introduced, using hashes and secret keys, exchanged between sender and recipient. That ensures, that nobody can run away with the funds, since secret keys are issued for every transaction. Without knowing it, nobody can release the underlying assets.
For a deeper insight, the COMIT whitepaper is available under
http://www.comit.network/doc/COMIT%20white%20paper%20v1.0.2.pdf