BTC Inc
by Dustin Byington, Sep 15, 2017

The Digital Economy’s Need for Interoperability


Interoperability

This year media has brought extensive attention to the rise of cryptocurrencies. At the time of this writing there are more than 900 cryptocurrencies available online with a market cap up nearly 800 percent this year alone. On August 11, the value of all cryptocurrencies reached an all-time high totalling $126 billion.

The 2017 Global Cryptocurrency Benchmarking Study by cryptocurrency economists Dr. Garrick Hileman and Michel Rauchs provides further evidence of cryptocurrency’s massive financial trajectory. As the report points out, “the advent of cryptocurrency has also sparked many new business platforms with sizable valuations, along with new forms of peer-to-peer economic activity.”

The study estimates the current number of unique cryptocurrency wallet users at between 2.9 and 5.8 million. It also suggests how cryptocurrency functions within different sectors is changing. Hileman and Rauchs point out that 31 percent of cryptocurrency companies surveyed in the report operate across two or more sectors; this has given rise to an increasing number of universal cryptocurrency companies.

 Managing Growth and Interoperability

As the cryptocurrency market expands, the appreciation of assets increases, creating a need for more exchanges to handle the transaction load. Attempts are being made to address this demand through the use of both centralized and decentralized exchanges. 

Unfortunately, the vast majority of wallet and exchange companies are centralized. When you use a centralized exchange such as Poloniex, Kraken or BTCC, you are entrusting your money to a third party. In this scenario, users are assuming that a centralized exchange will not lose their money through hacking, internal theft, mismanagement or bankruptcy.

The aim of Wanchain is to offer a safe and open way to transact and exchange cryptocurrencies. By facilitating the seamless transfer of assets between different blockchains, Wanchain can create a new distributed financial infrastructure.

The Path Forward

Technological innovation causes change and often disruption. Though technological development can  improves the efficiency of networks, innovation is only effective when new applications are successfully integrated into a larger business ecosystem. Wanchain’s value is in helping to manage and improve the interoperability between new financial innovations in blockchain technology.

As this industry progresses, its impact on exchanges, wallet providers and the overall digital economy will become more pronounced. It’s likely that this progress will continue to fuel the global adoption of cryptocurrencies by transforming the way people store and transact money and other digital assets.

Wanchain seeks to develop a distributed future “bank” that will act as the central platform or digital-asset-based financial infrastructure; any institution or individual will then be able to set up their own virtual teller window in the “bank.” Wanchain will give users access to services such as cryptocurrency loan origination, asset exchanges, credit payments and transaction settlements based on digital assets.

In conclusion, Wanchain is positioned to address the interoperability challenges of the cryptocurrency landscape over the short term, offering a leap forward in addressing cross-chain problems in the real world that have yet to be solved.

Note: Due to the recent regulations from the Chinese government, Wanchain’s ICO has been postponed. Recently, Wanchain has announced that it will adopt KYC and AML procedures for global compliance.

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