Ethereum Classic Leads the Way In Blockchain Interoperability
ETC adoption increases as interoperability moves into focus
The “Scalability Trilemma” shows us that Blockchain systems must deal with trade-off decisions at their inception . Different consensus models provide different qualities that become the base DNA of their respective blockchain platforms. Proof-Of-Work systems are great for securing valuable assets with their “unforgeable costliness” protection, while Proof-of-Stake systems can facilitate much faster transactions at scale. Even at a 10,000 foot view, the decisions at such a fundemental layer have huge ramifications on use cases and point to a likely eventuality: there will be multiple blockchains.
The transfer of value is only one use case, but that use case alone comes with multiple flavors. Large value transfers are less concerned with speed and scalability, and much more focused on security (possibly even zk-snark powered anonymity). A content paywall platform would need to facilitate thousands of fast micro-transactions for viewers to seamlessly enjoy their content without friction.
But for every simple and straightforward payments case, there are 100’s of new and innovative use cases that blockchain makes possible. How do we handle Non-Fungible tokens? What about machine-to-machine payments? Self Sovereign identity? The answer isnt in one blockchain, but in multiple blockchains evolving together through interoperability.
Ethereum Classic has been heavily investing time and energy into interoperability, with not 1, but 4 different projects emerging over the last few months. As a leader in decentralization and immutability, developers are flocking to this “Build First” mentality and they are pioneering the first steps into chain interoperability. Together with the Ethereum Foundation, Akomba Labs, Kyber Network , POA Network , and Metronome, the new era of collaboration is here.
Interoperable chains open up a world where moving assets from one platform to another, or payment- versus-payment and payment-versus-delivery schemes, or accessing information from one chain inside another (eg. “identity chains” and payment systems may be a plausible link) becomes easy and even implementable by third parties without any additional effort required from the operators of the base blockchain protocols — Vitalik Buterin
The 4 projects:
OpenRPC: Json-RPC Specification defining a standard for all blockchains
Metronome: Cryptocurrency built for maximum portability and endurance
peaceBridge: ETC — ETH bridge that uses co-signed chains of custody to verify transactions across the two chains
Tokenbridge: ETC — ETH bridge that uses wrapped Ethereum Classic
The Ethereum Classic Labs Core (ECLC) team recently created the OpenRPC Specification, aiming to improve all blockchain dapp development. The specification emulates OpenAPI, the successful and widely adopted specification for REST APIs. By starting this initiative, developers will be able to save time from hand-writing code and will have better inter-organizational communication by removing guesswork on which services and capabilities are supported.
Although this initiative doesn’t target a specific chain or use case, the focus on fundamentals is one that benefits every chain. Uniformity in standards is the most critical area of collaboration.
Read more: ETC Labs Core Releases OpenRPC
As the first cryptocurrency capable of being exported and imported across chains, Metronome will be initially issued on Ethereum with Ethereum Classic, Rootstock on Bitcoin, and Qtum support expected to follow. Such portability will allow users to select the chain that suits their requirements for management and security, or even upgrade the MET contract if needed. Metronome’s main goal is to be a built to last cryptocurrency, and portability furthers this goal by freeing Metronome from the fate of any one chain.
This is the first cross-chain solution, to our knowledge, that incorporates the challenge functionality into the UI. This brings opaque security mechanisms to the front and centre of users’ consciousness, encouraging engaged and informed users. In future iterations, always-online watchtower services can also take on the role of automated challenging.
This solution takes a “decentralised centralisation” approach: meaning that even though it derives security guarantees from the incentives of a staked operator, anyone can choose be their own operator. Furthermore, every user provides their own liquidity and mints their own tokens, unlike the WETC TokenBridge.
No data availability issues: unlike relay-based bridges, there is no way for a single party to censor or withhold data about deposits, transfers, or withdraws happening on either chain. Transactions are fully logged on each respective chain. (Of course, this also means that gas costs apply as per usual — this is not a scalability solution.)
Read more: peaceBridge MVP launch
The Ethereum Classic Bridge is a decentralized application that interfaces with both the Ethereum Classic (ETC) blockchain and the Ethereum mainnet. ETC coins can be transferred to the Ethereum mainnet via the ETC bridge. When this occurs, a specified amount of ETC is locked in a smart contract and a corresponding amount of WETC (an ERC20 compliant token) is minted on Ethereum. Users can also transfer their tokens from WETC back to ETC via the ETC bridge. When this transfer occurs, WETCtokens are burned and the equivalent amount of ETC is unlocked on the Ethereum Classic chain.
WETC tokens are Ethereum Classic compatible tokens on the Ethereum blockchain. They have the same characteristics as a standard ERC20 token and can be transferred or stored in any ERC20 compatible wallet or storage mechanism. When a new WETC token is issued (minted) the supply of ETC tokens does NOT increase; each WETC token represents a single ETC token on the Ethereum blockchain. WETC tokens can only be created via the ETC Bridge so it is not possible for the supply of WETC tokens to exceed the supply of ETC tokens. Similar to the issuance of POA20 from POA 4, the amount of circulating ETC tokens is equal across both networks (Ethereum Classic and Ethereum).
With the introduction of the ETC Bridge and WETC tokens, users now have access to a larger market and more liquidity! WETC token can be transferred and sold in decentralized exchanges, furthermore, users can leverage their WETC tokens on lending platforms where it is possible to borrow assets or create a loan using wETC as collateral.
Interested in getting more involved with ETC? We’re focused on accelerating the development of Ethereum Classic and need your help! Reach out to us to see how you can get more involved today!
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