Analysis of crosschain platforms
Interoperability among blockchains became a necessity
New blockchain projects are announced every day. Technological diversity, a fast pace of innovations and issues with existing blockchains bring new challenges. A cross-chain solution is what leads the industry to a new level and helps to achieve mass adoption.
As interoperability among blockchains became a necessity, dozens of projects start to search for a solution. EVEN team conducted the market research to find out what different projects has already achieved. In order to compare them we came up with several questions.
Flexibility. Is it possible to use this solution with any other blockchain?
Scalability. Is it fast enough and efficient regardless the number of its users?
Mass adoption. Is it easy to use?
Cross-chain smart contracts. Do they have such technology?
Ecosystems of side chains
Polkadot and Cosmos developed new ecosystems from the scratch. Inside of these systems anyone can create private or public side chains. Subchains (or parachains, or zones) inside a main chain can interact with each other seamlessly.
Existing stand-alone blockchain platforms have to comply with requirements to become a part of the ecosystem. As the requirements include specific consensus algorithms and other major technical characteristics, the unification may lead to hard forks of blockchains.
Flexibility. These solutions build separate cross-chain ecosystems instead of connecting other blockchains. It is not a flexible approach and it doesn’t solve the industry problems. While interoperability between multiple existing blockchains is not achieved, other characteristics are not important.
Side chains for existing blockchains
Interoperability will eventually solve scalability problems of existing blockchains. Plasma technology aims to enhance Ethereum by transferring intensive computations to sidechains. Solution allows conducting so-called off-chain transactions and then broadcast them in Ethereum mainchain.
Flexibility. Plasma is developed as a solution compatible with only one blockchain, which is Ethereum. While technology may resolve scalability issues it nothing to do with the connection Ethereum to other blockchains. If Plasma were compatible with other blockchain systems, it would increase their efficiency while transferring data between them.
Atomic swap and similar open protocols are P2P exchange services. They are based on a system of smart contracts which safely and autonomously perform cross-chain operations. To understand how it works imagine you have two safes and one of them is like postbox with a slit. Both safes have the same lock code. You ask your partner to put his asset in the safe with the slit, while you put your asset in the other safe. Then you publicly enter the code to the safe with the slit and withdraw the asset. Your partner sees the combination and opens the other safe. If you didn’t take the money from the first safe, it automatically opens in 24 hours and lets your partner take his asset.
Flexibility. Generally, swaps are safe and suitable for many platforms supporting smart contracts.
Scalability. Swaps are very slow and dependent on blockchains that they connect.
Mass adoption. Technology requires advanced awareness level and is not suitable for an average user.
Cross-chain smart contracts are not applied to the technology that is limited to asset exchange.
Wanchain, Universal Protocol and Cosmos Ethereum Peg Zone introduce special tokens that represent target assets in their networks. Those networks block assets in their native blockchains and release proxy tokens in the corresponding amounts. When the asset is unlocked by a smart contract, these systems burn proxy tokens.
Flexibility. Potentially these projects can deploy solutions for many blockchains. But each time they have to issue a customized proxy token.
Scalability and efficiency are advantages of this approach.
Mass adoption is limited by the number of supported blockchains and number of users of the projects.
Cross-chain smart contracts are not a part of the technology.
EVEN develops a universal cross-chain solution which can easily connect existing and even future blockchain technologies. We apply proxy tokens approach, add crosschain smart contracts similar to Plasma and swaps, and our unique technologies. The network operates with assets which are locked by the system during a cross-chain operation. EVEN node owners connect blockchains by bridges to nodes of other blockchains, which they also run.
Flexibility. It does not matter what kind of asset you are going to exchange as long as someone in the network runs the corresponding node.
Scalability. EVEN Network uses efficient and safe Rated DAG.
Mass adoption of blockchain is the goal of the EVEN platform. Cross-chain operations are seamless and easy.
Cross-chain smart contracts are provided by EVEN Network.
The solution is Open Source, please follow us on GitHub to try it among the first.
What are blockchain perspectives? Does crosschain disrupts industries as Internet did? Welcome to the discussion!