Let’s Take A Closer Look At Cross-Chain Systems And Today’s Ever-Expanding Blockchain Ecosystem

Let’s Take A Closer Look At Cross-Chain Systems And Today’s Ever-Expanding Blockchain Ecosystem

As many of our regular readers may remember, a host of articles previously published on BitcoinExchangeGuide have delved deep into distribution patterns associated with the XRP ledger. However, since the crypto world consists of a large number of blockchains, how do we make transactability on these networks more streamlined.

To start off with, it is of utmost importance that we understand the concept of ‘gateways’. Simply put, gateways are digital avenues that help investors purchase crypto assets seamlessly— primarily when they are making use of Fiat currencies. To be even more simplistic, for a person to trade one crypto-asset for fiat-based money or another cryptocurrency, he/she has to make use of a ‘financial gateway’.

Additionally, these gateways can also be thought of as pieces of a larger puzzle that help introduce more transparency into a currency’s ecosystem— or even help in the tracing of funds during cross-chain interactions.

More On The Matter

Let us assume that we have a blockchain network that we choose to represent in the form of wallets and payments tx’s. Now, if two such ecosystems (let’s say one being ETH and one being BTC) were to interact with one another, we would see that all of their native payment nodes would contain information about the “estimated FIAT value at the time of the transaction uniformly across the system”. As a result of this, we can establish a single common denominator which can be useful for sourcing distribution patterns— without the need of using a gateway’s private ledgers.

This level of transparency is quite insane on first glance but it does offer public blockchain systems with plenty of functional benefits. For example, it helps eliminate issues related to money laundering, fraud, thefts etc.

Final Take

In rounding off this piece, we can see that the above stated theoretical approach can be used for almost all blockchain ecosystems— except for privacy-focused blockchains. It now remains to be seen how the cryptosphere evolves from here on out and what types of offerings emerge from this burgeoning domain in the near future.



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