Evolution of cross-chain platforms for the exchange of crypto assets

Jun 15, 2018 · 6 min read

The main thing in the current blockchain modelling is the general principle of the action, and if we look at the isolation of closed and corporate blockchains, it becomes clear that their limitations do not play into the hands of the Internet of values, which requires the expansion and integration of multiple networks, for which different cross-chains are developed.

One of the most famous blockchain of our day is the Bitcoin blockchain.

The main advantages of this network are the status of its digital currency, the number of nodes and decentralization. At the same time, such cryptocurrencies as Ethereum (ETH) and BitShares (BTS) are gradually ahead of their predecessor in terms of technologies and applications, creating a threat to the primacy of Bitcoin: applications created on its basis can not be much because of the complexities and limitations in the process of bitcoin development. And here, in order to continue innovative development, while maintaining the decentralized nature of the bitcoin network, there are sidechains. Sidechain is a new blockchain based on the main bitcoin chain, which, through integration, implements a new financial ecosystem and extends the application space for the bitcoin network.

Compared with open blockchains, the corporate has more promising development trends. However, they should be afraid of becoming completely centralized or polycentralized: centralization can lead to the collapse of the entire network in the event of imposing sanctions, or because of simple malfunctions. In the context of open blockchains, on the contrary, it is impossible to change the confirmed blocks of transactions under any circumstances: whether imposing an injunction or the requirement of a group of network participants, no one has the right to freeze or fine assets.

The corporate and closed blockchains to some extent violate the principles of the system on which the trust of users and the value of the technology itself is built — decentralization. The digital assets of such blockchains of similarity can not be directly transferred to other networks, which makes them look like isolated islands. In this light, more and more attention is attracted by technology, which connects various blockchains — crosschain.

Sidechain (sidechain) is a new blockchain system based on the parent chain. Sidechains implement new financial ecosystems through integration into bitcoin, ethereum, and etc., which distinguishes them from other cryptocurrencies, which ignore existing networks. Using sidechain, we can easily create all sorts of smart financial contracts, stocks, futures, derivatives and much more. On the basis of bitcoin, for example, you can create an innumerable set of sidechain with different tasks and features, whose assets will depend on the volatility of the main chain. Based on this, the sidechain contributes to the further expansion of the field of application and innovative space for blockchain technology. This allows traditional blockchains to support several types of assets, small payments, smart contracts, safe transactions, registration of real property rights, etc., and also increases the confidentiality of blockchains transactions.

The most popular bitcoin-sidechains are ConsenSys, BTC Relay, Rootstock and YuansuChain from BlockStream, as well as Lisk and Chinese Asch.

Blockchain will become a sustainable language used in communication between economic agents (people, robots, etc). In the future will be a multiple range of blockchains both centralized and decentralized. Moving forward blockchains will have the ability to communicate with each other.

In connection with this, we see the evolution of ATUMbridge from the platform of various tokens exchange in ATUMbridge 2.0 to full-fledged bridge between different blockchains. The goal of the bridge is to simplify economic agent communication.

Today blockchain as a language of the future is only beginning to take shape; in practice, now and then, it can be employed only in a cryptocurrency trade.

In the perspective of several years, there will be the formation of clearing centers based on a number of blockchains. Clearing transactions will occur in the blockchain (p2p), the objects of trade will be synthetic instruments (due to which the crosschain is predominantly committed) to any class of assets. In this process, the issues of sustainability and reliability will be provided by the blockchain and independent nodes themselves.

Further, by using synthetic tools, trading operations and clearing can be fully used in the process of a direct crosschain.

The final stage is the complete integration of blockchain and crosschain solutions into the world financial cryptosystem.

ATUMchain project offers us on the organization of a crosschain platform for the exchange of cryptocurrency assets.

ATUMchain is a crosschain solution. This solution will allow us to make transactions between various blockchains. At the heart of the platform is their own blockchain which is tested on NEM, as well as a number of other solutions.

The purpose of ATUM is to provide a fast exchange of transactions (financial and other logic) at the client-client level.

Moreover, the team develops its own blockchain, which makes this project unique in the sphere of decentralized exchanges and for cross-platform transactions.

ATUMbridge (ATUM).

ATUMbridge is a cross-chain platform for trading of cryptocurrencies. The platform has own blockchain tested on NEM, Tendermint.

The aim of ATUMbridge is to provide transparent client-client (wallet-wallet) trading without a stock of funds to the exchange.

Advantages of ATUMbridge

- Direct client-client trading, counterparty risk is leveled;

- No restrictions on the volume of transactions and the need to pass KYC;

- Impossibility of the site to manipulate prices and trade against customers;

- Trade commission is 10x lower with the same speed and volume of processed transactions;

- Possibility of option trading;

- Reliable security of funds — funds are stored in the lockbox on a multi-account account and changes to the account are possible only if a “consensus” is reached between the owner, the site — ATUMbridge and the independent nodes of NEM;

- Speed of event processing per second of ATUMbridge is not inferior to existing centralized platforms, and besides there is the possibility of connection via API for traders;

- Commission — ATUMbridge is a competitive commission, which is 0.01% per transaction, which is almost 10 times less than that of existing sites;

- ATUMbridge is a platform where real traders can attract customers, and all back-office and risk management will be undertaken by NEM and ATUMbridge blockchain.

In addition, decentralization in this form opens up wide opportunities for launching parallel services on a platform such as Repo and Option Trading (since in this case we exclude the counterparty risk).

In the technological aspect, the blockchain is a combination of a decentralized database and a distributed register for recording transactions. From a commercial point of view, this is one of the phenomena of the Internet of values (things), where an increase in the number of connected nodes results in multiple multiplication of value. In fact, blockchain is the basic infrastructure of the Internet values, which should not be limited to closed and corporate blockchain: you can not lock assets in the narrow confines of one space. On the contrary, it is necessary to establish links between various blockchain-networks for the further expansion of this technology, which becomes possible with the advent of cross-chain technology.