Why I love the cryptocurrency Block and the project Block.do
Why I love the cryptocurrency Block and the project Block.do
Why I love the cryptocurrency Block and the project Block.do !
The first rule Cryptocurrency
Hello Everyone, The concept of safety while trading is very important and you have to be very careful when moving your cryptocurrency on and off cryptocurrency exchanges to trade there, you must be careful storing your cryptocurrency there and you must be careful with decentralized finance Tokenization and custody processes. This brings you to the next idea: Your crypto, in your wallet, secured by your keys.
Your crypto, in your wallet, secured by your keys.
When I first learned about Bitcoin I had to learn about the blockchain and the concept of decentralization. The main goal goal of cryptocurrency has always been decentralization and one important aspect of that is control over your money. The possession of your private keys always guarantees this control and concurrently, the safety of your money. As long as you keep your keys and your seed phrase safe. This brings us to the next concept; The Irony of Centralized Exchanges.
The Irony of Centralized Exchanges.
Ironically, this movement founded on decentralization where you controlled the keys to your wallet and this you controlled your money, has always had centralized exchanges.
And in order to trade cryptocurrency tokens on centralized exchanges, you send your cryptocurrency from your wallet, secured by your private keys and your seed phrase, to an exchange wallet. Which is secured by their private keys and their seed phrase.
While your exchange account has a password, it is not the same as the keys to a wallet. When you send your crypto to a centralized exchange, you are surrendering your cryptocurrency tokens to them and you must trust them to return your property. They then control your cryptocurrency.
You might not believe what I am writing, and feel like you have control over your account. But if the exchange freezes all trading on your crypto, or if the exchange just freezes trading in your account, you can't get withdrawal your crypto to your wallet or transfer it to another exchange. You then have to wait until they say you can have it, and they dictate how much, when and sometimes where you can send it. Sometimes, it is only when you come to this particular spot in your cryptocurrency journey, that you truly understand; Not your keys, not your crypto. Your crypto on the exchange is in their wallet, controlled by their keys. Now in that moment you understand why centralized exchanges are the antithesis of decentralization. This is of course brings us to the next topic: atomic swaps.
Atomic Swaps
In general terms, atomic swaps allow you to exchange your cryptocurrency for someone else’s cryptocurrency without moving your crypto-currency to an exchange wallet, where it’s no longer in a wallet under your control, but in an exchange wallet under their control. You can think of it this way: in an Atomic Swap you trade cryptocurrencies from your wallet to someone else’s wallet. It starts by connecting your wallet to a platform, and interacting with a smart contract. Both parties to the trade connect their wallets to the platform, interact with the smart contract, and into which both parties input the details of the trade. The smart contract verifies the existence of the cryptocurrencies involved in the proposed trades in each trade, and once both parties agree to the terms and consent to the swap, the cryptocurrencies are exchanged. Your cryptocurrencies stay in your wallets until the trade deal is agreed to and appropriate wallets exist on each side and then they are exchanged. Most exchange style risk is eliminated. This is a trust less, peer to peer exchange, with no trusted intermediary like an exchange. This of course brings us to the cryptocurrency Block, which is part of the blockchains project Blocknet.io.
Blocknet.co atomic swap solution is called Xbridge.
I have read about atomic swaps as an answer to security concerns involving cryptocurrency trading. But this technology is frequently talked about but I had not seen a functioning product, until now. That product is XBridge, created by Blocknet.io
And cryptocurrency projects already integrated into its swap protocol include #bitcoin, #bitcoin Cash, #dash and #litecoin. In fact, there are over 100 projects!
Blocknet has been working on the problem of centralization of exchanges and centralization since 2014. It has a working product called XBridge. This product is a dApp, but it works on a network, not a blockchain. You see BLocknet.do is not just working on a dApp, they are working on a phenomenal concept called the interchain which is revolutionary network, not controlled by anyone and open to everyone. This idea brings us to the product called XRouter.
The interchain: X-Router
A decentralized communication layer that connects blockchain networks to multi-chain applications. Blocknet has conceived the notion that cryptocurrency isn't a zero sum game, with one or two blockchains being the winner and all others being loser. Instead Blocknet envisioned a network, open to all, which allowed all blockchains to speak to each other, and all applications on blockchains to be able interact with applications on other blockchains, and buy the goods and services of these applications. I am pausing for your to unpack that mentally. It's a lot.
Okay, let’s proceed to the next facet of this project The Interwork.
The Interwork
Imagine a software platform, similar to the internet connecting webpages, that connects blockchains. Thats right, envision all the blockchains in the cryptocurrency universe, being connected to other blockchains functionally by a network, called the internetwork. And this network allows communication between applications on different blockchains, and the purchase of goods and services between blockchains. And lets take it one step further, these purchases are made with each chains native cryptocurrency tokens, using atomic swaps and multiple asset wallets. So your probably thinking is the Fantasy or Reality? Let’s talk about it.
Fantasy or Reality?
I can’t blame you for thinking this is a Fantasy. But in Reality Blocknet.do has a atomic swap dApp called X-Bridge and their are currently over 100 cryptocurrency blockchains which have been integrated with the XBridge and the Interchain, so that any of those 100 cryptocurrencies can be swapped for any of the others. This requires another pause I think, because I found a true DEX, a Decentralized Exchange for Cryptocurrency, previously thought to be a myth, just like a Unicorn. Yes, a functional decentralized exchange doing atomic swaps! This mythical beast which was often spoken about but never seen, has now been found. Plus it is in use by very notable projects like #bitcoin, #bitcoin Cash, Dash and #litecoin. Yes these three coins are one of the 100 coins which has completed the Integration Process and now can be swapped via XBridge. Source
So there are many more technical details that you can read about on their website.
Blocknet.do has created a True decentralized cryptocurrency exchange with atomic swaps. This may be one version of decentralized trading of the future, where people exchange cryptocurrencies from their wallets. So now you know why I think this cryptocurrency project and this cryptocurrency token Block are a fantastic longterm investment.
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.
Read more of shortsegments articles here: https://leofinance.io/@shortsegments
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