Page 28 - PROJECT KHOKHA 2

THE PROOF-OF-CONCEPT
The modular architecture enabled the Khokha Hub to serve as a decentralised TTP and further illustrated how other market participants could innovate to add value in private, permissioned or public networks linked to the Khokha Hub.
A token may be ported, that is, transferred between the hub and a zone, through a software bridge, which creates and maintains the relationship between the DLTs enabling the transfer of value.
The PK2 software bridge
The PK2 software bridge was designed for the purpose of transferring wCBDC between the wCBDC Zone and Khokha Hub. It was operated off-chain and it relied primarily on the use of application programming interfaces (APIs)
to facilitate the exchange of value. The PK2 software bridge was operated centrally by the SARB to align the two networks (i.e. the wCBDC Zone and the Khokha Hub) and to ensure that all the wCBDC tokens transferred to the Khokha
Figure 10: Porting wCBDC to the Khokha Hub
Hub, from the wCBDC Zone, were ‘frozen’ in
the wCBDC Zone. This meant that wCBDC was moved to a cession wallet in the wCBDC Zone, preventing its use while an equivalent value
of wCBDC was created on the Khokha Hub (exported) and moved to the wallet of the entity porting the wCBDC on the Khokha Hub for use. This guarantees a 1:1 mapping and value pegging between the wCBDC tokens in the Khokha Hub and the frozen tokens in the wCBDC Zone. The ownership of the tokens frozen in the wCBDC Zone was managed by the Khokha Hub. When tokens were imported back from the Khokha Hub to the wCBDC Zone, the process was reversed – the tokens were destroyed in the Khokha Hub and unfrozen in the wCBDC Zone. Thus, the ownership of the wCBDC tokens
was again managed exclusively in the wCBDC Zone. In addition, the bridge allowed for a
buffer or temporary holding area to be created, which could be utilised for managing pending transactions in the event of connectivity issues. Figure 10 below provides a simplified example.
FMD wallet
8
Ledger cession wallet
10
Ledger cession wallet
69
Import journey
Software bridge
FMD (wCBDC) wallet
4
Bank (n) wallet
5 3
Bank 1 wallet
1
Bank (n) (wCBDC) wallet
2
Export journey
7
Khokha Hub ledger
wCBDC Zone ledger
Bank 1 (wCBDC) wallet
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PROJECT KHOKHA 2