Layer-1 blockchain platform Wire Network announced the launch of its blockchain interoperability protocol called Universal Polymorphic Address Protocol (UPAP).
In the Web3 ecosystem, which is comparatively nascent to the larger crypto market, the primary interaction occurs over digital goods and NFTs. However, the growing number of Web3 platforms lack interoperability which could be a huge roadblock to a seamless Web3 experience. Wire Network aims to change that with its universal wallet address protocol.
Blockchain interoperability is the ability to share information across different blockchain networks without restrictions. With the evolution of the blockchain industry, hundreds of new protocols and blockchain standards have emerged. Thus, the interactions among different blockchains become complex. This is where interoperability helps in bridging that gap.
The new UPAP protocol aims to address the interoperability problem in the web3 ecosystem. While there have been several interoperability solutions in the past, most of them were limited to a particular ecosystem or a particular issue such as liquidation and fund transfers.
Interoperability can be achieved via different methods such as cross-chains, sidechains, proxy tokens, swaps, etc. Many blockchain platforms have focused on interoperability in the past, for example, Polkadot allows different blockchains to plug into a larger, standardized ecosystem while Cosmos employs an inter-blockchain communication (IBC) protocol to establish blockchain interoperability.
Related: Why cross-chain interoperability matters for DeFi
UPAP, on the other hand, promises to offer an interoperability solution with universal readable wallet addresses to send and receive nonfungible tokens (NFTs), perform cryptocurrency swaps, and add liquidity pairs across any blockchain.
The interoperability solution gets rid of most of the complexities involved with existing solutions and requires no bridges or oracles.
Anyone can integrate the UPAP wallet into a blockchain that uses Elliptic Curve Digital Signature Algorithm (ECDSA) cryptographic algorithm. Users will need to import the mnemonic code from their choice of wallet and UPAP would create a universal address, using which users can send any asset across any blockchain.
Title: Wire Network's new protocol aims to end Web3 interoperability woes
Sourced From: cointelegraph.com/news/wire-network-s-new-protocol-aims-to-end-web3-interoperability-woes
Published Date: Thu, 23 Jun 2022 12:01:26 +0100