To complete a cross-chain transfer, a Tourist (a basic user within the HyperExchange network) needs to create a HyperExchange account through the Indicator. The Indicator will then bind a corresponding tunnel account with that HyperExchange account.
In this way, when an asset (such as BTC) is deposited into a multi-signature tunnel account, the HyperExchange network will send the same amount of HIOU tokens to the senders corresponding HyperExchange account after the transaction has been confirmed.
When the HyperExchange system is initialised or when a new Senator joins the network, the multi-signature account (denominated in BTC, LTC or others) needs to be created or updated to reflect all current Senators.
Account types include:
1) HyperExchange Account:
To participate within the network, users are required to create a HyperExchange account. This account will allow users to store, trade and stake multiple assets on the HyperExchange, including HIOU, HX and others.
2) Tunnel Account:
When a user creates an account in the HyperExchange, the network generates a corresponding tunnel account and the two accounts are bound together. When using bounded accounts, users will be subject to a maximum of 10,000 transactions per day. Any transactions above this limit will require verification and approval from a Citizen. (This 10,000-maximum limit can be adjusted through consensus).
3). Hot and Cold Multi-signature Account:
Cross-chain assets pledged to the network will be stored in hot and cold multi-signature wallets. Through consensus, these hot and cold multi-signature wallets are created and managed by all current Senators.