BITSONIC’s Crypto School Part 8 — CrossChain
Bitsonic’s Crypto School introduces promising overseas projects that investors may want to know about.
Part 8 begins with CrossChain.
What is CrossChain?
CrossChain, as the name implies, plays a role in connecting different blockchains. For example, cryptocurrencies such as Bitcoin and Ethereum cannot interoperate with each other. In other words, one of the most commonly used methods is to exchange Bitcoin for fiat currency and then repurchase Ethereum. However, this transaction process is costly and time-consuming, so it is inconvenient.
At this moment, if CrossChain supports exchanges is utilized, transactions can be made more convenient and efficient. CrossChain acts as an intermediary. It helps to interoperate transactions and exchanges between two cryptocurrencies smoothly. This also makes it easy to exchange immediately and facilitates the connection between various blockchain platforms.
What are the main features of CrossChain?
1) When different cryptocurrencies are exchanged, the connection is made without complicated steps or procedures.
2) When a transaction between cryptocurrencies occurs, there is no exchange between tokens, but only data is transmitted.
3) Increases the scalability of the blockchain and connects other blockchains.
Polkadot, a crypto project that utilizes CrossChain
Polkadot is a project led by Gavin Wood, the co-founder of Ethereum, and supports services that connect different blockchains.
Exchanges between various types of data and cryptocurrencies can also be delivered through CrossChain supported by Polkadot. Polkadot is composed of the para chain (relay chain), showing a clear growth trend in terms of development. As of January 15, 2021, the total market value is approximately $13.4 billion.
Cosmos
As of January 15, 2021, Cosmos has a total market value of approximately $1.8 billion. Cosmos (ATOM) is developed by the Tendermint team in 2016. It is also CrossChain blockchain project designed to increase the token ecosystem’s scalability and utility based on token transmission. In April 2017, Cosmos Coin conducted an ICO through CoinOne, and in just one minute, the funding target amount of 10 million dollars was raised as investment funds.
Cosmos is a distributed network of independent parallel blockchains. Each network is driven by a BFT consensus algorithm, such as Tendermint consensus. Through this, Cosmos aims to build a blockchain application with interoperability such as customization, security, and scalability. Cosmos is currently about to release the Interchain IBC. It will be released on February 1, and if governance passes, anyone can connect to the hub through the Cosmos Interchain IBC.
