InterBlockchain, found online at Interblockchain.io, lets you unlock coins from silos. Find out how it works today in our review.
What Is InterBlockchain?
The InterBlockchain Network is a unique protocol that allows coins trapped in their blockchain network siloes to be moved to other blockchains.
In other words, a coin trapped in a unique blockchain can be moved to a multi-ledger blockchain like Ethereum, Neo, EOS, Stellar, Lisk, Qtum, etc., then can be redeemed back to its original blockchain while still retaining its value.
For example, a bitcoin moved as an “i-bitcoin” on Ethereum can be traded locally with full bitcoin value for another ERC20 coin or an Ether (ETH) on a 0x non-custodian based relay. At this point, the new i-bitcoin owner can redeem the i-bitcoin back into a bitcoin.
Why would you do that? Well, instead of paying bitcoin’s high transaction fees and waiting for its long transfer times, you could transfer bitcoin to a cheaper blockchain – like Ethereum or Stellar – to enjoy faster transfer times and cheaper transfers.
Obviously, this is a unique concept that we haven’t really seen before. So how exactly does InterBlockchain accomplish it? Let’s take a closer look at how it works.
How InterBlockchain Trade & Exchange Cryptocurrency Coins Works
InterBlockchain works in three main steps. First it moves the currency, then it performs a transaction, then it exchanges the value. Here’s the process broken down into further detail:
- Single ledger blockchains like bitcoin are locked into a single network – the bitcoin network.
- With the InterBlockchain connected to multiple blockchain networks, coins like bitcoin can be moved to faster networks with much lower transaction fees. Instead of waiting minutes for your BTC transaction to be complete, you can complete it in seconds.
- Any spent i-bitcoin can be redeemed back as bitcoin with their full value. An i-bitcoin (iBTC) is pegged to the value of bitcoin (BTC).
- Supported coins on InterBlockchain include Bitcoin, Bitcoin Cash, Bitcoin Gold, Litecoin, Ripple, Ethereum, and Ethereum Classic. All of these coins can be transferred today to Ethereum and back to their original networks. InterBlockchain plans to add support for EOS and the Stellar network in the near future.
From this point forward, you can transact coins however you like. Merchants might use this process to save 2% to 3% on transaction fees, for example.
Or, you can exchange your existing Bitcoin, Litecoin, and Bitcoin Cash holdings into i-coins on the Ethereum network, then exchange them on non-custodian exchanges however you like. You’re effectively trading bitcoin directly from your wallet.
InterBlockchain relies on a network of “Augmented Nodes”. The Augmented Node adds an event driven interface to the bundled request-response interface. Event monitors monitor each blockchain supported by InterBlockchain. Event handler nodes, meanwhile, receive and process these events. Event subscriptions and publications are aggregated into a single interface.
This network of InterBlockchain processors, as you might expect, sits between the original cryptocurrency and its destination blockchain. Any moved token can be redeemed back to its original blockchain while keeping its value. A bitcoin is moved as an i-Bitcoin on programmable blockchains can be redeemed back as a bitcoin in the Bitcoin blockchain.
A more detailed technical explanation can be seen here on the official website.
Who’s Behind InterBlockchain?
InterBlockchain is registered in Nassau, Bahamas, although their LinkedIn page reports a headquarters in Montreal, Quebec, Canada.
As of March 2018, the company’s official website reports 2,185 total installs.
InterBlockchain seeks to vastly enhance the interoperability of different cryptocurrencies, helping us unlock value from blockchain siloes. Using InterBlockchain, you can transfer cryptocurrencies from one siloed blockchain – like bitcoin, Bitcoin Cash, or Bitcoin Gold – into the Ethereum blockchain (support for Stellar and EOS is expected to be added in the future). Once it’s on the Ethereum blockchain (as “i-Bitcoin”) you can transfer the value as easily as any ERC20 token, with the value constantly pegged to the value of the underlying asset.
To learn more about InterBlockchain and how it works, visit online today at InterBlockchain.io. The highly detailed technical whitepaper provides deeper insight into the unique solution.