By
Temitope Olatunji
April 24th, 2024
An increasing number of crypto projects are now utilizing cross-chain technology, clearing the way to an interconnected blockchain environment.
Cross-chains are beginning to dominate the blockchain landscape, with projects increasingly looking to interoperable solutions. In May a single transaction on Ethereum created more wrapped Bitcoin (wBTC) than the entire value of BTC held on the Lightning Network. The strength of wBTC has only continued to grow since, as greater numbers of individuals seek to unlock defi applications with the value of their bitcoin holdings.
The Total Value Locked in wBTC has shown little sign of slowing down since May. Photo: Defi Pulse
Increasing numbers of crypto projects are now utilizing cross-chain technology, clearing the way to an interconnected blockchain environment. Interoperability and communication between chains is rapidly becoming the rule rather than the exception. Cosmos is one of the many projects driving this rapid change, with big name projects such as Binance Chain onboard, also supported by emerging players such as e-Money which is introducing its own range of currency-backed stablecoins to the network.
Fresh Opportunities
KIRA is a decentralized network and one of the most interesting projects supported by Cosmos. KIRA proposes to do far more than simply provide a decentralized exchange on the network. The project will nurture a whole raft of new blockchain projects with cross-chain Multi-Bonded Proof of Stake (MBPoS). What makes MBPoS unique is that it allows for staking in crypto assets, digital fiat and commodities across multiple chains. With cross-chain interoperability the opportunity for investment is greatly improved.
KIRA will leverage this staking method to create the Initial Validator Offering, a new form of crowdfunding in which investors will retain ownership of the startup capital. By staking assets across multiple chains, investors will mine entirely new tokens. This network effect will allow users to stake tokens and assets of one type to receive them as block rewards in the form of an entirely new token.
According to KIRA co-founder Mateusz Grzelak, the future of blockchain will be increasingly interconnected. He explains:
“Multi-bonded Proof of Stake technology is what allows us to tap into the full potential of blockchain. The network effects and decentralization of KIRA’s IVOs offer more secure, stable crowdfunding than was ever previously possible, and with access to greater liquidity too.”
Gateway
Cosmos is by no means the only project thinking in cross-chain terms. Increasingly the defi space requires multi-chain data to fuel its growth. Band Protocol is a rising star in the defi space thanks to its positioning as a blockchain agnostic oracle, reflecting crypto and defi’s shift towards interconnectivity.
Recently the project partnered with TRON, one of the top 20 cryptocurrencies by market cap, further bolstering its defi credentials. TRON has been making significant inroads into the defi market of late, with its own stablecoin JUST (USDJ) and JustSwap, a decentralized trading protocol for automated liquidity. Band Protocol will bring cross-chain functionality to its growing list of defi apps.
Cross-chain solutions are also being touted as a potential solution to the growing pressure on the Ethereum network. Matic and Loom are among the established solutions offering Ethereum bridges to alleviate pressure on the beleaguered network. One emerging contender to their cross-chain crown is OIN Finance, uses cross-chain technology to support Ethereum, QTUM and multiple other blockchains on the OIN network in a solution which they have called “the gateway to DeFi.”
Last-Mile of DeFi
There is a gateway to DeFi and a last-mile to DeFi. One company, Aleph.im, is a cross-chain scalability network featuring decentralized computing, database storage and a DID framework. Aleph is currently focused on supercharging the DeFi ecosystem by partnering up with projects such as Serum, Jarvis and Orion Protocol.
Thanks to aleph’s transformative technology, DeFi projects can finally decentralize the last mile of their tech stack (remove their off-chain dependencies), leverage the full power of cross-chain composability and tap into the huge source of interchain liquidity. Last but not least, these projects also gain access users from all our supported chains. The currently supported chains are Ethereum, NEO, NULS and Binance Chain.