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In this paper, we propose FedChain, a novel framework forfederated-blockchain systems, to enable effective transferring of tokensbetween different blockchain networks. Particularly, we first introduce afederated-blockchain system together with a cross-chain transfer protocol tofacilitate the secure and decentralized transfer of tokens between chains. Wethen develop a novel PoS-based consensus mechanism for FedChain, which cansatisfy strict security requirements, prevent various blockchain-specificattacks, and achieve a more desirable performance compared to those of otherexisting consensus mechanisms. Moreover, a Stackelberg game model is developedto examine and address the problem of centralization in the FedChain system.Furthermore, the game model can enhance the security and performance ofFedChain. By analyzing interactions between the stakeholders and chainoperators, we can prove the uniqueness of the Stackelberg equilibrium and findthe exact formula for this equilibrium. These results are especially importantfor the stakeholders to determine their best investment strategies and for thechain operators to design the optimal policy to maximize their benefits andsecurity protection for FedChain. Simulations results then clearly show thatthe FedChain framework can help stakeholders to maximize their profits and thechain operators to design appropriate parameters to enhance FedChain's securityand performance.

FedChain: Secure Proof-of-Stake-based Framework for Federated-blockchain Systems