A leading Layer 2 platform that wants to tackle Crypto’s interoperability problem
Hong Kong — News Direct — Coinweb
By Jad Malaeb, Benzinga
According to many, blockchain will change the world.
This idea may not have fully registered yet, but big players are betting big that they will eventually. Blockchain’s current conception can be compared to the conception of the Internet in its infancy; namely, it appears to be a complex technology with many potential implications for the world.
Like the Internet, its paradigm-shifting implications are dismissed by many. Bill Gates was famously laughed at when he said the Internet would change the world. For blockchain advocates, this is history rhyme. For them, blockchain is a world-changing technology capable of disrupting the world’s largest markets and transforming people’s everyday relationships with their data, finances and identities.
But even among the faithful, no one is sure what final form blockchain will take. What is certain is that money and intellect follow the industry closely. In accordance Galaxy Digitalventure capitalists spent over $33 billion on blockchain projects in 2021.
Despite the capital overload, threats to blockchain’s rise are brewing beneath the surface.
Issues in the Blockchain Space
While the implications for finance, banking and the internet have begun to manifest via entrepreneurial activity (think Aave, Polygon, SolidBlock), the blockchain industry is still riddled with fraudulent agents and fundamental flaws.
FTX’s collapse exemplifies the threats that come with blockchain’s “aging,” but many believe the industry’s biggest threat lies in more deeply rooted issues than trust. Interoperability, for example, ranks high on the list of roadblocks to blockchain’s mainstream adoption.
Essentially, interoperability is the ability of independent systems to exchange and use information. This feature creates value in many systems people use on a daily basis. Interoperability is what allows Outlook and Gmail users to communicate with each other, and allows two bank account holders in Japan and Canada to easily send and receive money.
Interoperability is scarce in the blockchain industry. Up to this point, layer-1 blockchains such as Ethereum, Bitcoin and Solana cannot directly exchange data and value between each other. For true large-scale adoption to occur, communication between blockchains must be a seamless, effortless process.
Coinweb: A Layer 2 Blockchain
With over 170,000 unique users and over 3 million transactions to date, Coinweb is a popular DLT project that aims to tackle blockchain’s interoperability problem (and many others).
Coinweb is what is known as a layer-2 platform; it ‘sits on top’ of existing layer-1 platforms (ex: Ethereum, Bitcoin and Elrond) and connects them together. Layer-1 platforms contain an excessive amount of information, and mass synchronization of this information across multiple Layer-1s is a task packed with technological complexity.
All non-technical consumers need to know is that Coinweb helps layer-1 exchange information between each other, enabling interoperability. Specifically, Coinweb enables projects, companies and developers to build on top of their platform and benefit from the functionality of the multiple chains they connect to. On top of that, Coinweb makes products that make it easy to connect and use advanced blockchain technology for practical purposes.
For example, Coinweb’s cross-chain tokenization platform, called LinkMint, allows companies to create tokens that can move across chains (ie achieve interoperability) without requiring any coding knowledge. In addition, these tokens can then be linked to real assets such as real estate and intellectual property.
Additionally, Coinweb Wallet and Marketplace (DeconX) will provide a direct gateway for anyone to send, receive and trade tokens with others and even exchange crypto for fiat currencies. Coinweb’s regulatory umbrella supports crypto operations across North America, Europe and Asia-Pacific. It also includes integrated fiat rails with credit card processing, SWIFT, SEPA, faster payments and online transfers as well as issuing prepaid crypto debit cards.
Perhaps most interestingly, Coinweb also offers multi-tenancy wallets (ie “White-labeled” wallets). Organizations can partner with Coinweb to create their own branded wallet with custom designs and features, allowing their communities to create tokens within their own ecosystems. For example, a hotel brand can create its own wallet, issue tokens and use these to offer loyalty programs and create hotel bookings.
The future of interoperability and Coinweb
“The general concept of one chain to rule them all or an Ethereum-Killer chain to come … these kinds of maximalist ideas are completely off,” Coinweb CEO Toby Gilbert said in an exclusive interview with Benzinga. “What we’re really seeing a push for today is layer-2 platforms, platforms that sit on top of existing layer-1 blockchains and connect them together.”
With Coinweb, the blockchain industry may be on the verge of achieving the connectivity it needs to foster mainstream adoption. Mr. Gilbert tells Benzinga that this is just the beginning of Coinweb’s mission.
On December 22, 2022, Coinweb announced that they have done so the collaboration with BMW to deliver Cross-Chain Smart Contract architecture and build a blockchain loyalty program. In the future, it will release a public software development kit (SDK) to allow developers to freely build on top of the Coinweb platform.
For more information about CoinWeb, see the project’s presentation at The Future of Crypto conference, and visit their website here.
This article was originally published on Benzinga here.
Led by CEO, Toby Gilbert, and CTO, Knut Vinger, Coinweb aims to be the first general layer-2 platform to deliver truly unified interoperability, removing current transactional and computational bottlenecks. Coinweb enables maximum horizontal scalability while maintaining the consistency and reliability of the underlying blockchain’s security and decentralized features. The platform solves many of the problems found in current cross-chain implementations without the unnecessary use of bridges or multiple layers of consensus.2 DeFi projects have been built as a proof of concept that today supports more than 170,000* unique users. Coinweb designed, set up and issued a cross-chain stable token that DeFi platforms have sold more than USD 260 million* in the last 24 months, delivering up to 13% of all BCH transactions per day. Having secured various digital asset licenses worldwide, Coinweb offers multi-fiat on-ramping and off-ramping solutions within its multi-tenancy wallet. Coinweb’s cross-chain tokenization platform and single marketplace helps large and established traditional businesses digitize aspects of their businesses.*data based on December 2022
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