How the ORE Network Enables NFTs
The DeFi movement is unmistakably in its ascendency, but not without questions surrounding asset and transaction legitimacy. ORE Network’s purpose is to implement systems that better secure identities and assets, while ensuring their value across multiple blockchains. Communication cross-chain will only help fortify blockchain and cryptocurrencies as the future of finance.
Ensuring Authenticity — Cross-Chain
Proof-of-funds or assets can also be tied to an identity on the ORE Network for accredited investor checks. Checking the status of a potential investor will not require any on-chain transactions or associated costs.
A user will be able to prove ownership of a Bitcoin (BTC) wallet holding a certain amount of BTC using ORE Network. In the same way, businesses could also check if a device is holding a certain NFT on Ethereum, enabling interesting use cases like non-fungible tokens (NFTs) being backstage passes for a concert.
Users will not only be able to prove their public keys or assets on one chain for the purpose of authentication or proof of funds, they will be able to do so on multiple chains at once. Furthermore, the ORE Network enables cross-chain capabilities that will greatly enhance NFTs and DeFi.
Multi-Chain Verification Legitimizes NFTs
We have already seen the copycat NFTs arise. This is when a valuable NFT is copied onto a different blockchain other than the original chain it was minted on without the permission of the owner.
This potentially dilutes the value of the original NFT by reducing its perceived scarcity and can also cause problems with provenance or chain-of-ownership. The ORE Network could allow for an NFT to be assigned one owner across multiple chains and guarantee sovereignty.
This means that NFTs will be multi-chain and not siloed to a single chain. One of the major pain points in DeFi right now is that pools of capital are isolated to individual chains and side chains. Even assets on Ethereum’s layer 1 and its various layer 2s are not immediately composable. Transferring between layers is time-consuming and complex.
Empowering the Shift From Traditional to Tokenization
The ORE Network enables cross-chain or multi-chain DeFi and decentralized exchanges (DEX). Users are able to prove their assets on one chain to use as collateral on a DeFi platform on another chain without having to bridge or wrap those tokens first.
Cross-chain transfers and escrow are also enabled. Two counterparties can assert their identities across multiple blockchains enabling frictionless trading of assets across multiple chains.
Because ORE can connect to off-chain systems, the ORE Network could even enable yield farming capital deployed on DeFi to be used as collateral for margin trading on a centralized exchange.
As more and more traditional assets become tokenized, the possibilities become extremely interesting. Imagine being able to pay for a stock with crypto or having a single unified brokerage interface for your stocks, bonds, NFTs and cryptocurrencies across multiple chains.
The full potential of DeFi will not be realized until traditional finance is fully composable with decentralized finance and pools of capital and liquidity are not isolated to individual blockchains. The ORE Network can act as the bridge between different blockchains and the traditional financial world.
If you’re interested in learning more about the Open Rights Exchange, check out our website.
About the Open Rights Foundation
Built in partnership with AIKON, the Open Rights Exchange is built to be simple to use and compatible with all chains. A single password — not a key — is provided as the entry to not just the Open Rights Exchange, but to all other chains including Ethereum, Polygon, Algorand and EOS — with even more chains being added every quarter.