Thread by @PantosIO

Last week, we released our update on Oracle Scalability. In that post, we also deep-dived into the first possible use cases for the PAN token, but how would an actual token transfer work in this current approach and what are the use cases for the PAN token?

Please be aware that the explained proceedings are not finalised and contain theoretical figures. We are still researching several different approaches, as our protocol requires a certain amount of flexibility in order to ensure the best outcome.

Alice, a Pantos client, wants to send 100 PAN from her Ethereum address to a BSC address. A Pantos service node picks up the request and executes the required on-chain transactions. The Pantos oracle ensures that the cross-blockchain communication is verified.

To set up the transfer, Alice prepares on-chain transactions for the transfer of 100 PAN from Ethereum to BSC and for the transfer of a 5 PAN fee from the Ethereum blockchain. She then submits this preparation off-chain (e.g via the broadcast channel) to an eligible service node.

The service node executes a burn transaction on Ethereum’s blockchain, a claim transaction querying the Pantos oracle on BSC’s blockchain and a finalise transaction querying this on Ethereum’s blockchain. The 5 PAN reward fee is then transferred from Alice to the service node.

During this, Pantos service nodes are very limited in their ability to be malicious. At most, they can delay a transaction or cause a transaction to revert. Burn transactions include a finalisation promise with some of the service node’s PAN locked as collateral.

Service nodes pay 1 PAN to the Pantos oracle for each query. From a security perspective, it is better to design the oracle queries as three-step transactions: query-answer-execution. Pantos oracles need to be very risk-averse (see also the recent Poly hack).

It is up to the Pantos service nodes to choose which blockchains they support. For each supported blockchain, they need the native blockchain currency to execute transactions and for the PAN to be locked away as collateral. They receive PAN as a reward for the provided services.

The more PAN a Pantos service node holds on a given blockchain, the more requests it can handle simultaneously. The more PAN a Pantos service node is willing to lock as collateral, the more trustworthy it appears, possibly resulting in more requests and thus more rewards.

The Pantos oracle consists of a collection of Pantos oracle nodes. An answer from the oracle is signed by a majority of the oracle nodes and submitted by a randomly chosen oracle node. The reward for such an answer goes to the answering oracle node.

In order to take part in the Pantos oracle, Pantos oracle nodes are required to lock a global stake in PAN, which is PAN that is synchronised across all participating blockchains at the same time.

Pantos oracle nodes are required to monitor all participating blockchains. They need to answer queries on all blockchains and thus need to hold all native blockchain currencies. For every query they process, they are directly rewarded in PAN.

That was quite a number of Tweets today! And we only managed to scratch the surface of the protocol… if you need more details, feel invited to share your thoughts and questions with us here or in our Telegram groups!

You can find our groups here:

🇬🇧 Pantos English: t.me/PantosIO_EN/
🇦🇹 Pantos Deutsch: t.me/PantosIO_DE/