Lock by Archiving

Pre-condition: there exists a contract that needs to be locked and unlocked. In this section, Coin is used as the original contract to demonstrate locking and unlocking.

template Coin
  with
    owner: Party
    issuer: Party
    amount: Decimal
    delegates : [Party]
  where
    signatory issuer, owner
    observer delegates

    choice Transfer : ContractId TransferProposal
      with newOwner: Party
      controller owner
      do
          create TransferProposal
            with coin=this; newOwner

    --a coin can only be archived by the issuer under the condition that the issuer is the owner of the coin. This ensures the issuer cannot archive coins at will.
    choice Archives
      : ()
      controller issuer
      do assert (issuer == owner)

Archiving is a straightforward choice for locking because once a contract is archived, all choices on the contract become unavailable. Archiving can be done either through consuming choice or archiving contract.

Consuming Choice

The steps below show how to use a consuming choice in the original contract to achieve locking:

• Add a consuming choice, Lock, to the Coin template that creates a LockedCoin.
• The controller party on the Lock may vary depending on business context. In this example, owner is a good choice.
• The parameters to this choice are also subject to business use case. Normally, it should at least have locking terms (e.g. lock expiry time) and a party authorized to unlock.

    choice Lock : ContractId LockedCoin
      with maturity: Time; locker: Party
      controller owner
      do create LockedCoin with coin=this; maturity; locker

• Create a LockedCoin to represent Coin in the locked state. LockedCoin has the following characteristics, all in order to be able to recreate the original Coin:

  • The signatories are the same as the original contract.
  • It has all data of Coin, either through having a Coin as a field, or by replicating all data of Coin.
  • It has an Unlock choice to lift the lock.

  template LockedCoin
    with
      coin: Coin
      maturity: Time
      locker: Party
    where
      signatory coin.issuer, coin.owner
      observer locker
  

      choice Unlock
        : ContractId Coin
        controller locker
        do create coin
  

Locking By Consuming Choice Diagram

Archiving Contract

In the event that changing the original contract is not desirable and assuming the original contract already has an Archive choice, you can introduce another contract, CoinCommitment, to archive Coin and create LockedCoin.

• Examine the controller party and archiving logic in the Archives choice on the Coin contract. A coin can only be archived by the issuer under the condition that the issuer is the owner of the coin. This ensures the issuer cannot archive any coin at will.

    --a coin can only be archived by the issuer under the condition that the issuer is the owner of the coin. This ensures the issuer cannot archive coins at will.
    choice Archives
      : ()
      controller issuer
      do assert (issuer == owner)

• Since we need to call the Archives choice from CoinCommitment, its signatory has to be Issuer.

template CoinCommitment
  with
    owner: Party
    issuer: Party
    amount: Decimal
   where
    signatory issuer
    observer owner

• The controller party and parameters on the Lock choice are the same as described in locking by consuming choice. The additional logic required is to transfer the asset to the issuer, and then explicitly call the Archive choice on the Coin contract.
• Once a Coin is archived, the Lock choice creates a LockedCoin that represents Coin in locked state.

    nonconsuming choice LockCoin
      : ContractId LockedCoin
      with coinCid: ContractId Coin
           maturity: Time
           locker: Party
      controller owner
      do
        inputCoin <- fetch coinCid
        assert (inputCoin.owner == owner && inputCoin.issuer == issuer && inputCoin.amount == amount )
        --the original coin firstly transferred to issuer and then archived
        prop <- exercise coinCid Transfer with newOwner = issuer
        do
          id <- exercise prop AcceptTransfer
          exercise id Archives
        --create a lockedCoin to represent the coin in locked state
        create LockedCoin with
          coin=inputCoin with owner; issuer; amount
          maturity; locker

Locking By Archiving Contract Diagram

Trade-offs

This pattern achieves locking in a fairly straightforward way. However, there are some tradeoffs.

• Locking by archiving disables all choices on the original contract. Usually for consuming choices this is exactly what is required. But if a party needs to selectively lock only some choices, remaining active choices need to be replicated on the LockedCoin contract, which can lead to code duplication.
• The choices on the original contract need to be altered for the lock choice to be added. If this contract is shared across multiple participants, it will require agreement from all involved.