Tag: Interoperability

Categories
Crypto Guides

Universal Protocol – A Potential Platform to Connect Digital Assets

Introduction

Introduction

Introduction

The Bitcoin blockchain became a success as people realized the power of the decentralized technology. Then came Ethereum, offering many features and abilities in the existing technology. Given the enormous potential of this decentralized technology, it will take platforms like Universal Protocol for blockchain to be widely accepted in society.

The Universal Protocol offers various products and has partnered with well-known firms like Cred, Bitcoin.com, Blockchain at Berkeley, Uphold, and Brave.

The vision of the Universal Protocol

Universal Protocol was created with a vision to connect every possible financial market participant with Cryptocurrencies, be it publicly traded equities worth millions of dollars or merely buying anything from a local departmental store.

Precisely speaking, the Universal Protocol Platform is visioning to attract 100 million new users to the world of Cryptos and facilitate a company or group to make a seamless platform to create digital assets. The goal might seem far-fetched, but present stats show that it has made impressive progress.

Problem and Solution

The Universal Protocol addresses the non-existence of scaled interoperability. The platform allows users instant and seamless transfer of value across various decentralized networks. It mainly provides a common language via which incompatible protocols can ‘reason’ against one another, and at the same time, reduces the time, risk, and cost of exchanging digital assets.

With an advanced architecture for interoperability, the UP platform will allow users to interact with several cryptocurrencies on a single blockchain. The Universal Protocol combines the revolutionary smart contracts and reserve functionality to enable highly secure and convertible proxy tokens through its platform.

Applications and Benefits

As stated by the vision of Universal Protocol, we can affirm that everyone in the financial industry can make use of the platform. Below are some ecosystems where the platform can be employed to make digital assets a part of the everyday financial system.

Financial Institutions

The Universal Protocol tries to solve the custodial challenges that some major financial institutions have faced since the past. The model created by UPP provides single standard compatibility with the help of Proxy Token, which can be used for tokenizing any financial asset. Thus, it will remove the requirement for multiple types of custodial programs, and the institutions will have to print their business logic only once, on Ethereum.

Centralized Exchanges

The process of listing new coins on a centralized exchange is a complex, expensive, and time-consuming process that could take up to months of work. But with the help of the Universal Protocol Platform, centralized exchanges can dramatically streamline the process of listing new cryptocurrencies. With UPP, exchanges will have to add ERC-20 to list proxies representing any digitally tokenized asset.

Innovators

For developers as well, UPP is an excellent tool for innovation. The best part being, developers will only have to deal with one type of network, even if they’re looking to build their blockchain. The Universal Protocol model would ensure system-wide compatibility and also simplify the use of dApps and smart contracts.

Conclusion

The goal of the Universal Protocol is still intact, and apart from that, it has been working on other projects as well. This has hence led to the emergence of new opportunities in the world of blockchain. And we believe that it worth keeping an eye on the further developments on the Universal Protocol Platform.

Categories
Crypto Guides

Importance of ‘Interoperability’ In The Blockchain Technology

What Is Interoperability?

What Is Interoperability?

What Is Interoperability?

Interoperability is the ability of software systems or two different systems to connect and exchange information. In this connected world, there are always different systems that would connect so that the required data is provided as needed. The best example of interoperability can be termed as a web page working on a web browser if they are of the same standard.

Why do we need interoperability in blockchain?

In today’s world, we use different software, which essentially integrates to provide the resultant output. In the case of varying blockchain platforms are being developed for various purposes. Often in the same industrial space, different platforms are built, and these platforms do not know another platform.

For example, the bitcoin blockchain has no information about Ethereum blockchain. This creates a lot of siloes in the industry. Often new platforms come into picture claiming there more secure, scalable, immutable competing with the rivals. This creates a wastage in terms of resources, money, and energy of different teams.

Why is it crucial for blockchain?

To make mass adoption possible for blockchain technology. Every other platform is competing with each other to increase the scalability of blockchain. The original bitcoin blockchain was capable of sending only seven transactions per second. Later new projects came up and eventually achieved around 40,000 TPS. While Visa, Mastercard achieve approximately 24,000 TPS, but in reality, they need only 1700 TPS as per the real-world stats to be viable even with the ever-present demand.

Hence 40,000 TPS is not essential at all. Instead of concentrating on scalability, it would be better to consider improving the technology as such. Even if scalability is achieved as required in case of no interoperability, one cannot use the blockchain tech wherever needed as we use a MasterCard/visa as they can be used anywhere across the world. Hence interoperability is essential for blockchain for mass adoption.

Let us see some of the examples of platforms which allows the blockchain interoperability below:

Polkadot

Polkadot was developed by Gavin Wood, a co-founder of Ethereum. Polkadot is essentially a multichain or cross-chain technology that allows different blockchain platforms to be plugged into a more extensive system. Technically, Polkadot accomplishes parachains i.e., it will enable the processing of transactions parallelly between different blockchains and relays to the main blockchain through bridges. Polkadot not only transmits transactions between blockchains but also data is transferred. Information is transferred in the form of smart contracts and the abilities that come up with them.

Cosmos

Cosmos is just like Polkadot; it also follows a cross-chain principle. The essential difference between cosmos and Polkadot is that it only concentrates on facilitating transactions between blockchains but not data across them. Cosmos doesn’t require the blockchains to forfeit their consensus algorithm when plugged into the network. It establishes inter blockchain communication (IBC) to establish blockchain interoperability. The IBC serves as a TCP/IP like messaging protocol for blockchains.

Though these startups are at a very early stage of development in their roadmap, we have to wait and watch how it plays out. Blockchain is a niche technology, but many big players are coming into the picture to incorporate blockchain to achieve more success, and the interoperability of blockchain will make that. For any technology to gain momentum, adaptability is essential where interoperability is one thing to be achieved for the mass adaptability.

Categories
Crypto Guides

How Different Is Permissioned Blockchain From Permissionless Blockchain?

Introduction

Introduction

Introduction

Blockchain has created ripples throughout many industries. Its security futures are ever essential now with increasing data due to IoT. Artificial Intelligence and Machine learning are used to analyze the data generated to find different patterns as per the requirement. Blockchain is essential to secure the data or transfer the data securely.

Different industries are trying to implement the blockchain technology to improve their business. Hence, it is essential to design the platform in terms of their requirement. To facilitate the same, we have different types of blockchain platforms available. They are as follows:

  1. Permissioned blockchain or Private blockchain
  2. Permissionless blockchain or Public blockchain.
  3. Hybrid blockchain.

Permissionless Blockchain

Cryptocurrency platforms are classic examples of permissionless blockchain platforms. As the name suggests, it is a public blockchain. Anyone can join the network to perform different activities in the network, like users, miners, developers, or community members. Since the network is transparent, anyone can have a look at the transactions getting confirmed in the network.

🔓 Permissionless blockchain networks follow all the underlying principles of a real blockchain network. These networks are genuinely decentralized.

🔓 Authorities cannot shut down the network as no single entity controls the network. People, regardless of nation, location can join the network from anywhere.

🔓 Mostly all public blockchains are linked to a token with some intrinsic value. Based on the network-specific number of coins are mined at the beginning itself, or new coins are mined after every block is confirmed.

🔓 Miners are rewarded with these tokens to keep running the network smoothly.

🔓 Bitcoin is an example of a permissionless blockchain network.

Permissioned Blockchain

Enterprise blockchains are an excellent example of permissioned or private blockchains. Permissions should be given for different entities to join the network.

🔐 Everyone should have valid credentials to join the network.

🔐 These networks are not genuinely decentralized as these networks are created for the purposes of enterprises.

🔐 Not all the members of the network can see the transactions unless they have appropriate permissions.

🔐 Different Hyperledger platforms developed for different enterprise use cases are good examples of permissioned blockchain networks.

🔐 These blockchains are often not associated with tokens as enterprises run these.

Consortium Blockchains

Consortium blockchains are nothing but private blockchains but run by different entities together. Blockchain, being niche technology, different companies, even rivals, are coming together as a consortium to develop the technology.

R3 Corda is one such example in the financial place formed to create the technology for Fintech purposes.

Hybrid Blockchain

Hybrid blockchains offer the functionalities of private and public blockchains together at the same time. The entities involved can choose which data should be open or closed, depending on their functionality. The users need not forgo one feature completely to utilize the other functionality.

🔐🔓 Interoperability is very much possible, enabling to form multichain because of the hybrid nature of the platform.

🔐🔓 Dragonchain is an excellent example of Hybrid blockchains.

These are different types of blockchains available as of now, enabling the adoption of various industries as per their requirement.