Bitcoin and Ethereum are notorious as the top two cryptocurrencies by market capitalisation. Many do consider that Bitcoin and Ethereum are in direct competition, however this competition does not exist outside of the race for the highest market capitalisation. Bitcoin and Ethereum exist on different networks for different reasons, Bitcoin and Ethereum do very different jobs to each other and therefore, they can exist in harmony.
This sense of harmony is something that has been picked up on by iBitcome.
In partnership with DEx.top, iBitcome have develop what is known as the Open Federated Gateway Protocol (OFGP), which looks to be the world’s first federated blockchain. OFGP is paired with a block explorer that lets users keep track of transactions across the OFGP blockchain. The interesting thing about this is that within the OFGP, transactions between Bitcoin and Ethereum will be enabled, as a result of the development of a new token which has been named WBCH. WBCH is a Bitcoin Cash based stablecoin that will track the value of Bitcoin Cash and act as a vehicle to enable cross chain transactions between Bitcoin and Ethereum.
How does the Open Federated Gateway Protocol work?
According to the OFGP whitepaper:
It’s complicated – however in reference to the cross chain transactions, here’s a few stand out points for you.
“The Open Consortium Gateway Protocol is mainly responsible for protocol communication between the main chain and the sidechain: it is not only responsible for the issuing of token from the main chain to the side chain (withdrawal), and also back from side chain to the main chain.”
“The process of transferring a token from one public chain to another is called a gateway transaction. The node receives the public chain transaction monitored by the watcher, puts it a line to be processed, and after a series of processing steps, initiates a token transfer transaction on the other side of the public chain to complete the token cross-chain transaction.”
“The basic operation from BCH to ETH is to transfer a certain amount of BCHs to the specified multi-signal address on the BCH chain. The corresponding gateway will go to the contract on the ETH chain to deposit the specified account with the corresponding amount of tokens. The contract’s token and BCH are permanently pegged to a fixed ratio.”
We can’t lie, this is a very complicated process, therefore, if you’re super interested in this, check out the full OFGP whitepaper for yourself, here.
As the whitepaper concludes:
“The OFGP protocol can facilitate the efficient transfer of assets between the main chain and the side chain. Unlike traditional ICO, ICO is essentially a form of giving out equity for financing. But all assets generated through OFGP are based on credit. Through the consortium gateway, a trust between the main chain and the side chain is established, and asset mapping through the gateway can accelerate the flow of assets between different ecosystems. At the same time, we also believe that there can be an innovation on the ‘no-trust and no-license’ model. We hope that the side chain application can quickly carry out unlicensed innovation in the form of registration, and let the consortium gateway ensure the asset security of the main chain.”
The friendlier name for this protocol is Mallow. Mallow has been set up as something that iBitcome believe will inspire other people to build similar gateways on OFGP in order to build a culture that nurtures healthy competition and of course, improving the entire systems decentralisation.
Overall, this is simply just a very complicated decentralised exchange, one that has big implications for how this technology may develop in the future. More blockchains are expected to be added and both iBitcome and DEx.top wish to build an ecosystem that exists to give everyone equal access to cross chain exchanges and a safe and secure cryptocurrency storage facility.
As stated, OFGP comes with it’s own native wallet, therefore both teams are not only addressing cross chain exchange issues here, they are addressing storage solutions too. According to the OFGP whitepaper:
“The wallet is a convenient means for customers to participate in the operation of the gateway transaction. In the OFGP protocol, the cooperation of the client is also required to quickly and conveniently complete the customer’s request for depositing and withdrawing. Here, the wallet client only needs to do a small amount of upgrade to complete the customer’s deposit and withdrawal request.”
According to Cointelegraph:
“The company hopes that Mallow’s launch is going to enable existing iBitcome users to complete transfers of assets more efficiently between main chains and side chains. OFGP utilizes the Byzantine Fault Tolerant Raft (or Braft for short) in order to achieve consistently fast transaction speeds. In time, it is hoped that asset collateral certification on the public blockchain will pave the way for supporting ‘more complex applications and faster payments.’ iBitcome says that tackling the issue of scalability and interaction between public chains is one of its main priorities, as well as striving to maintain decentralization for its user base.”
We expect to see a lot more of this sort of technology begin to surface over the coming years. This might not have huge implications for Bitcoin and Ethereum just yet, but, OFGP has the potential to change at least some of the crypto landscape for the future.
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