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Arbitrary message passing across blockchains and implications for financial markets

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  • Li, Jiasun
  • Wu, Zhengxun

Abstract

As an example of the coevolution of financial and technological innovations, the increasing sophistication of smart contract applications and the coexistence of multiple blockchains give rise to an arbitrary message passing (AMP) problem, that is, how to reliably transmit general information from one blockchain to another. To help the finance community better understand the technical essence of this emerging area and better appreciate its implications, this paper develops a unifying framework for AMP solutions, highlighting trade-offs in speed, security, and trustlessness in their designs. We apply our framework to explain the mechanisms of several representative AMP protocols currently being developed in practice, and discuss their respective security properties and performance along with the various design trade-offs we have identified. We also discuss the potential implications of AMPs for financial market innovations.

Suggested Citation

  • Li, Jiasun & Wu, Zhengxun, 2026. "Arbitrary message passing across blockchains and implications for financial markets," Research Policy, Elsevier, vol. 55(7).
    • Handle: RePEc:eee:respol:v:55:y:2026:i:7:s0048733326000983
    DOI: 10.1016/j.respol.2026.105507
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