DATx Establishes Cross-Chain Hub for the Blockchain Industry(12:03 Hrs. IST)
SINGAPORE, Oct. 12, 2018 /PRNewswire/ -- On September 30th, the team at DATx, a blockchain project focused on building industry infrastructure, announced the addition of cross-chain interoperability functionality to the DATxChain (Decentralized Application Transformational Chain), the DATx public chain. With the increasingly fragmented nature of the blockchain industry, the DATx team believes only by increasing communication between chains will blockchain technology reach wide commercial adoption.
What is cross-chain interoperability?
Cross-chain interoperability is the ability of two different blockchains to transfer information between each other. Currently, cross-chain interoperability has yet to be acheived on a significant scale due to technical barriers in differing protocols between chains.
Advocates believe cross-chain interoperability will allow for a more efficient token economy by connecting blockchains specialized for different markets, making cryptocurrency a real competitive alternative to the fiat economy.
Currently, the lack of cross-chain interoperability has also impacted user-adoption of DAPPs, blockchain's answer to traditional centralized web applications. According to a report from CCN on August 27, only 8 DAPPs are drawing in more than 300 daily active users.
These low figures point to an infrastructural issue. Most DAPPs are unable to attract consistent userbases due to the fragmented nature of the blockchain industry: each DAPP can only operate on its own chain, limited to the resources of that chain's token holders. In addition, over half the market capitalization of cryptocurrencies is tied to Bitcoin, which doesn't support DAPPs.
As Mona, Global BD of DATx, explained, "Without cross-chain interoperability protocols, each blockchain will be an isolated island. This is detrimental for the development of DAPPs and the entire blockchain ecosystem."
To address this, the DATxChain will see the addition of a cross-chain protocol, establishing it as a hub for multiple supported blockchains such as Bitcoin, Ethereum, and EOS. By supporting value transfers between chains, the DATx ecosystem will be able to provide DAPP developers a fertile environment for development at the meeting point of multiple blockchains.
How It Works
DATx has developed the X-DPOS consensus mechanism to power its cross-chain protocol. X-DPOS is derived from DPOS, which is proven to be capable of achieving a TPS rivalling Visa and Mastercard, all while supporting communications with other blockchains.
Like DPOS systems, DATx boasts that X-DPOS will contain no fees for regular users. System resources will be allotted according to how big a share of DATx token one holds.
According to their newest whitepaper, DATx achieves cross-chain interoperability through mapping non-DATx cryptocurrencies onto the DATxChain, the DATx mainnet. On the DATxChain, these mapped cryptocurrencies are termed "mapped assets".
As an added bonus, all transactions using these mapped assets on the DATxChain will be free of transactions fees that would occur on their own chain.
The goal for this cross-chain upgrade is for DATx to establish a healthy environment for facilitating more intuitive interactions between DAPPs and their users.
This means DAPP developers can count both the DATx community as a potential user base and the communities of all other supported currencies.
"Multi-asset cross chain interoperability is the foundation. And this foundation will help establish the DATxChain ecosystem, allowing DAPP developers to innovate passionately and freely," Mona stated.
"The cross-chain ecosystem on DATxChain will provide a hub where users and developers benefit from increased efficiency, allowing DAPPs to thrive. With interoperability between blockchains, the full potential of revolutionary potential of DAPPs will be unleashed."
DATx was initiated in early 2018 by Cosima Foundation to improve blockchain industry infrastructure. Its mission is to foster a decentralized ecosystem that incentivizes mutualistic interactions between all parties in the industry, including internet users.
Having fully integrated as a supported payment system on APX, DATx has entered phase two: commercial expansion. To accomplish this, DATx is committed to building DATxChain as a high-performance blockchain under a unified protocol that will support the seamless transfer of multiple assets from other blockchains (e.g. Bitcoin, Ethereum, and EOS). DATxChain will provide cross-chain interoperability to create the optimal environment for cultivating next generation, cross-chain DAPPs.