Payment-vs-Payment example using the M10 Ledger

Introduction

This repository provides a sample PvP coordination service using programmable payments instead of typical blockchain smart contracts. The service implemented using the M10 NodeJS SDK guarantees atomic execution of a Currency A <-> Currency B by using two-staged transfers & actions on the M10 network. Signed quotes can be published to the M10 ledger(s) & will be verified on both ledgers. Only once both parties have successfully created a Pending transfer, thereby putting the funds on hold, will the conditional-payment-manager complete the swap.

The service can be run as a centralized actor, as depicted below:

Or it can be run as a distributed process neighbouring each ledger, as depicted below:

The default service in this repository deploys the Centralized model. However by running a single agent in index.ts & deploying multiple instances, the Distributed model can easily be achieved.

Requirements

• node-js (Expected version "~16")
• yarn
• m10 CLI

Before you begin

1. Download the latest M10 CLI release as m10 and put into you into your path
2. Create the pvpManager.pkcs8 private key you'll use for the rest of this demo

# Generate an M10 keypair
m10 create key-pair pvpManager.pkcs8

# Output as Base64 to verify
base64 pvpManager.pkcs8

How to build & prepare for simulation

A distribution-ready pvpManager simulation cli & service can be created using yarn && yarn build, within the cli or the service directories respectively.

Open the repository in two terminal windows and run:

Window 1

cd cli && yarn && yarn build

Window 2

cd service && yarn && yarn build

In both windows export some environment variables:

# export the keys for use in the path
export LOCAL_KEY_PAIR=$(base64 ../pvpManager.pkcs8)
export REMOTE_KEY_PAIR=$(base64 ../pvpManager.pkcs8)
# export the ledger public URLs
export LOCAL_LEDGER_URL=develop.m10.net
export REMOTE_LEDGER_URL=develop.m10.net
# export the ledger root key, used for simulation of granting proper RBAC permissions
export ROOT_KEY_PAIR="MFMCAQEwBQYDK2VwBCIEIHyr+m5Z4gy9JxoMdgrrX/EE8uhzkj3ztWx28zJxpStqoSMDIQAAIwpWR4i34vnPf3GTlge6ONw3tsuGer5QiQsGXKY0zg=="
# export the bank admin key, used for simulation of initating the flow as the bank
export BANK_KEY_PAIR="MFMCAQEwBQYDK2VwBCIEIPTfjmouJ351G6zHdRRqzvGKPamXNjFb5cIVBN0MmqLAoSMDIQDNiOnzUfVHzu0nUeNeiqR5xXZ6j5YYFL4OWmgeG6qqKQ=="

next you will:

1. Run the setup command in the m10-fx-pvp CLI in window 1
2. Start the pvpManager service(s) in window 2
3. Initiate the PvP flow with the quote command in the m10-fx-pvp CLI in window 1
4. Observe the execution of flow in window 2

m10-fx-pvp CLI setup in window 1

The CLI allows for simulating the environment for a PvP interaction including the relevant parties and permissions, as well as simulating a real time quote ready for execution by both trade counterparties. The CLI has two commands:

• setup: for simulating setting up the required roles, role-bindings & accounts, which would typically be done as a prerequisite to having access to trade
• quote: for simulating initiationg of the RFQ interaction flow, which would typically be done by an individual, bank or intermediary

# Navigate to the cli folder and ensure it is built:
cd ./cli && yarn build

# Run the setup flow
# Uses the root key (provided) to initialize the roles & role-bindings
# Binds the pvp manager role to your pvp manager key
./bin/run setup \
 --server=$LOCAL_LEDGER_URL \
 --rootKeyPair=$ROOT_KEY_PAIR \
 --pvpKeyPair=$LOCAL_KEY_PAIR

Run the service in window 2

# Navigate to the service folder and ensure it is built:
cd ./service && yarn build

# run the service distribution built above
yarn start

The key pairs are a priviledged keypairs previously created & bound to the conditional-payment-manager role on each ledger. These were given the appropriate RBAC permission with the setup command in the cli above.

m10-fx-pvp CLI quote command in window 1

Initializing & executing a quote can be done interactively through the quote command:

# Run the quote flow
./bin/run quote \
 --ledger=$LOCAL_LEDGER_URL \
 --keyPair=$BANK_KEY_PAIR \
 --from=00000000000000000000000000000001 \
 --to=04000000000000000000000000000001 \
 --baseAmount=100 \
 --targetAmount=91

This will execute a swap for 100 of the currency held by account ID 00000000000000000000000000000001 vs 91 of the currency held by account ID 04000000000000000000000000000001

Observe the completion of the flow in window 1

After creating and signing the quote request, the CLI provides you the option to initiate the PvP flow by submitting the first initialization transfer step. Accept this and observe the pvpManager acknowledge this request. Then accept the second leg of flow from the CLI prompt, and observe the pvpManager respond to the second initiate request and complete the flow for both parties.