Cross-Chain Integration Architecture

With the development of the blockchain ecosystem, interoperability between different networks has become a critical requirement. Arkon has innovatively integrated three major cross-chain protocols—Cosmos IBC, Polkadot XCMP/XCM, and LayerZero—into a unified architecture for cross-chain asset aggregation and free transfer. Through this architecture, Arkon achieves efficient consolidation and seamless movement of multi-chain assets, providing users with a decentralized and secure cross-chain interaction experience.

          Arkon Cross-Chain Aggregation Architecture
──────────────────────────────────────────────────────────────
                    Arkon Station
       (User Interface | Wallet Access | Compliance Gateway)

           Arkon Protocol (Cross-Chain Core Engine)
  [IBC Aggregator] [XCM Router] [LayerZero Messaging] [AI Routing]

                ArkonSwap (DEX Interface Layer)
  Multi-chain Swaps | AMM + Orderbook | One-Click Cross-Chain UX

 Arkon Alliance Node Network (Interoperability Infrastructure)
   ↕ IBC (Cosmos)   ↕ XCM/XCMP (Polkadot)   ↕ LayerZero (EVM/L2)   ↕ Other Mainnets

Cross-Chain Protocol Integration Architecture

The Arkon platform adopts a layered architectural design, dividing its cross-chain aggregation functionality into four distinct layers: the Application Layer, Settlement Layer, Market Liquidity Layer, and Network Layer. At the core of multi-chain interoperability are the Arkon Aggregator and Cross-Chain Protocol modules within the Settlement Layer. The Arkon Aggregator acts as the "value hub" and router between different chains by integrating cross-chain communication protocols such as Cosmos IBC, Polkadot XCM, and cross-chain messaging protocols like LayerZero.

Arkon’s multi-chain asset integration architecture includes:

  • Application Layer: Composed of Arkon's main applications, Arkon SWAP (a decentralized exchange), payment modules, and more.

  • Settlement Layer: Houses the Arkon Aggregator and Cross-Chain Protocol modules, which facilitate cross-chain interactions and asset reconciliation.

  • Market Liquidity Layer: Includes AMMs (Automated Market Makers), order book trading systems, and lending markets to support liquidity and price discovery for cross-chain operations.

  • Network Layer: Consists of underlying connected blockchain networks such as Ethereum, BSC, NEO, Polkadot parachains, Layer 2 networks, and others.

These layers work in coordination via the Settlement Layer’s cross-chain aggregation modules, enabling unified asset management and free-flowing transfers across different blockchains. Within Arkon’s architecture, the Cross-Chain Protocol Module handles asset and message transfers between chains, while the Aggregator Module consolidates, clears, and redistributes cross-chain assets.

The Application Layer accesses the Aggregator’s interface to implement functions such as cross-chain swaps and payment settlements. The Market Liquidity Layer provides the necessary liquidity and pricing mechanisms for these operations. The Network Layer covers all major public and side chains integrated with Arkon.Through this layered design, Arkon achieves unified management and orchestration of diverse blockchain assets without compromising decentralization or security.

Complementary Roles of Cosmos IBC, Polkadot XCM, and LayerZero

The Arkon platform integrates three distinct cross-chain protocols—Cosmos IBC, Polkadot XCM/XCMP, and LayerZero—each with a unique purpose, playing complementary roles within the architecture:

Cosmos IBC (Inter-Blockchain Communication)

Cosmos IBC is the cross-chain communication protocol within the Cosmos ecosystem. Arkon uses IBC to enable secure asset transfers and data communication between blockchains (zones) built on the Cosmos SDK.

IBC relies on light client verification, where each participating chain runs a light client of the counterparty chain, validating block headers directly on-chain. Messages are relayed via relayers, enabling trustless cross-chain asset transfers.

In Arkon’s architecture, all asset interactions involving Cosmos SDK-based chains (e.g., Cosmos Hub, Osmosis) are conducted through IBC channels. This ensures the security and decentralization of cross-chain operations within the Cosmos ecosystem.

Polkadot XCM/XCMP

Arkon integrates Polkadot's cross-consensus message format (XCM) and Cross-Chain Message Passing (XCMP) to connect with parachain assets in the Polkadot/Kusama ecosystem.

Cross-chain communication in Polkadot is secured by the relay chain, which routes and validates messages between parachains. Assets on a parachain are transferred via XCM-formatted messages and delivered through XCMP channels.

In Arkon, tokens from the Polkadot ecosystem are transferred using XCM, routed securely by the relay chain via XCMP to the Arkon Aggregator module. Thanks to Polkadot’s shared security, this mechanism allows for native, trust-minimized asset transfers without relying on third-party bridges.

LayerZero

LayerZero is a next-generation general-purpose cross-chain messaging protocol designed for lightweight interoperability across heterogeneous blockchains. It employs an Ultra Light Node model, using a decentralized combination of oracles and relayers:

  • Oracles provide source chain block header summaries to the destination chain.

  • Relayers submit the transaction proof.

  • The two independently verify the message validity.

This avoids the need to run full light nodes on the destination chain while maintaining message security at the communication layer.

Arkon integrates LayerZero to connect with blockchains outside the Cosmos and Polkadot ecosystems—such as Ethereum, BSC, Avalanche, and Layer 2s. When cross-chain interactions are needed between heterogeneous chains (e.g., Ethereum to a Cosmos chain), Arkon uses LayerZero-driven smart contracts for reliable message delivery.

LayerZero supplements the architecture by enabling Arkon to aggregate assets from non-Cosmos/Polkadot chains, vastly expanding its cross-chain compatibility.

Integrated Complementarity in Arkon

These three protocols are strategically integrated to cover today’s major blockchain types:

  • Cosmos IBC handles intra-Cosmos chain transfers with a fully decentralized trust model.

  • Polkadot XCM/XCMP facilitates communication across Polkadot parachains using shared security.

  • LayerZero bridges external ecosystems with flexibility and efficiency.

This modular approach allows Arkon to select the most trust-minimized and cost-efficient path based on the source and destination chains:

  • Cosmos-to-Cosmos → IBC

  • Polkadot-to-Polkadot → XCM/XCMP

  • Cross-ecosystem (e.g., Ethereum-to-Cosmos) → LayerZero

By combining these protocols, Arkon achieves broad coverage, high security, and seamless asset interoperability, enabling free and efficient cross-chain asset flows across diverse blockchain environments.

Cross-Chain Security Guarantees and Expansion Technologies

In addition to the core cross-chain protocols mentioned above, the Arkon platform incorporates several other leading cross-chain technologies to enhance the security and scalability of its asset aggregation system:

Light Client Verification

Arkon places a strong emphasis on trustless security in cross-chain operations. Within the Cosmos IBC integration, each connected chain runs a light client of the other, enabling on-chain verification of the counterparty chain's state. For instance, when transferring tokens from Chain A to Chain B via IBC, Chain B’s IBC module acts as a light client of Chain A to verify the validity and immutability of the transaction proof.

Similarly, in Polkadot’s XCM, the shared relay chain acts as a validator for messages between parachains—routing and verifying execution. Arkon leverages these mechanisms to ensure that all cross-chain messaging is backed by cryptographic proofs and on-chain verification, significantly reducing trust assumptions.

Cross-Chain Oracles

For protocols like LayerZero, which rely on off-chain participants, Arkon integrates oracle mechanisms to balance decentralization and performance. In LayerZero, oracles and relayers are independent actors:

  • Oracles (e.g., Chainlink’s decentralized oracle network) transmit source chain block headers to the destination chain.

  • Relayers submit the corresponding transaction proofs.

  • Only when both sources match will the cross-chain message be executed.

Arkon selectively integrates reputable and highly decentralized oracle networks to secure cross-chain interactions, particularly when connecting to external chains such as Ethereum. In the future, Arkon also plans to support other interoperability protocols like Chainlink CCIP, further enhancing the reliability of its cross-chain services via oracle networks.

Hashed Time Lock Contracts (HTLC)

Arkon’s cross-chain system also supports HTLC-based atomic swap technology, especially useful in peer-to-peer (P2P) scenarios. HTLC ensures that both parties fulfill their commitments within a specified timeframe using hash and time locks—if both parties submit the correct hash, the asset swap proceeds; otherwise, funds are refunded automatically after timeout.

While most of Arkon’s cross-chain transfers are automated via integrated protocols, HTLC serves as a supplementary option for special cases requiring atomic swaps without intermediaries. With HTLC, Arkon guarantees atomicity in cross-chain transactions—either the trade completes successfully for both parties, or it fails safely, protecting users from one-sided default risk.

Summary: A Modular and Secure Cross-Chain Ecosystem

Arkon has built a comprehensive cross-chain asset aggregation system by combining multiple protocols (IBC, XCM, LayerZero) with key security-enhancing components such as:

  • Light client validation for trust-minimized interoperability

  • Decentralized oracles for message verification and external chain access

  • HTLC atomic swaps for high-trust peer-to-peer scenarios

Technology
Description

Light Client Verification

Used in Cosmos IBC and Polkadot XCM to enable trustless state validation

HTLC Atomic Locks

Ensures atomicity in direct swaps between users across chains

Cross-Chain Oracles

Enables decentralized message validation for protocols like LayerZero

Compliance Enforcement

Filters, blacklist checks, and geographic restrictions embedded in protocol logic

Through this modular design, Arkon enables seamless and secure asset transfers across a wide array of networks—including public chains, consortium chains, and Layer 2 solutions—without relying on centralized intermediaries or exposing users to unnecessary operational complexity.

Arkon’s innovation lies in its ability to blend decentralization, compliance, and technical sophistication, making it a robust and flexible cross-chain infrastructure for the multi-chain era. It empowers users to move or trade assets freely between networks and positions itself as a foundational pillar in the future of blockchain interoperability.

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