Current State Does Not Solve the Problem

There are a few methods utilized to attempt to solve this problem with limited results:

1. Webhooks

2. Co-processors

3. Messaging Protocols

Webhooks: Webhooks are inherently read-only, are often off-chain, are sometimes permissioned, and cannot directly determine the outputs without further integration by the party using them.

Co-processors: Are inherently single-user and not available to other parties in the ecosystem (e.g., a developer building an analytics co-processor to help them evaluate the health of their lending protocol, which they can utilize but is not interoperable with other protocols).

Messaging Protocols: Messaging protocols such as LayerZero and Axelar are concerned primarily about how state changes are implemented cross-chain – not whether or how transactions should be executed to begin with.

In a hypothetical scenario, a DeFi protocol on Ethereum would like to allow users to trade RWA assets if they are an approved user on Company 1’s RWA platform (and if not, to reject the transaction from this wallet). Say Company 1 has built an RWA platform on Blockchain 2, with dynamic off-chain metadata corresponding to approved users. Additionally, these users need to have an identity score of X as determined by a on-chain DID smart contract on Blockchain 3. In the past, implementing these solutions across various chains would have required multiple complex integrations and in many cases require direct communication with vendors. However, with KRNL, builders now only need to perform a single, one-time permissionless integration.

There is not currently any application layer that facilitates the conditional logic before state changes are executed, and this is generally built ground-up by builders. Ideally, this would be done in a plug-and-play, permissionless manner that would be reproducible by protocols that want to utilize the RWA platform and identifiers from the DID system.

Figure 1