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A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Interoperability allows for tokens<\/a> to be traded across various chains through decentralized exchanges (DEXs), reducing the need for centralized exchanges. This means in certain cases, the ledgers<\/a> behind the chains must be connected too, although the extent to what is observed by nodes may be limited.((Daml Docs - Ledger Interoperability<\/a>))<\/p>\n\n\n\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Interoperability is achieved through sidechains<\/a>, oracles, bridges<\/a>,((Gemini - Cross-Chain Interoperability: What it Means for Blockchain<\/a>)) and interoperability protocols<\/a>. There are various other methods all with the goal of allowing communication between chains.<\/p>\n\n\n\n

Interoperability allows for tokens<\/a> to be traded across various chains through decentralized exchanges (DEXs), reducing the need for centralized exchanges. This means in certain cases, the ledgers<\/a> behind the chains must be connected too, although the extent to what is observed by nodes may be limited.((Daml Docs - Ledger Interoperability<\/a>))<\/p>\n\n\n\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Blockchain interoperability is the compatibility between blockchains, allowing for features and information to be shared between chains. <\/p>\n\n\n\n

Interoperability is achieved through sidechains<\/a>, oracles, bridges<\/a>,((Gemini - Cross-Chain Interoperability: What it Means for Blockchain<\/a>)) and interoperability protocols<\/a>. There are various other methods all with the goal of allowing communication between chains.<\/p>\n\n\n\n

Interoperability allows for tokens<\/a> to be traded across various chains through decentralized exchanges (DEXs), reducing the need for centralized exchanges. This means in certain cases, the ledgers<\/a> behind the chains must be connected too, although the extent to what is observed by nodes may be limited.((Daml Docs - Ledger Interoperability<\/a>))<\/p>\n\n\n\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

What Is Blockchain Interoperability?<\/h2>\n\n\n\n

Blockchain interoperability is the compatibility between blockchains, allowing for features and information to be shared between chains. <\/p>\n\n\n\n

Interoperability is achieved through sidechains<\/a>, oracles, bridges<\/a>,((Gemini - Cross-Chain Interoperability: What it Means for Blockchain<\/a>)) and interoperability protocols<\/a>. There are various other methods all with the goal of allowing communication between chains.<\/p>\n\n\n\n

Interoperability allows for tokens<\/a> to be traded across various chains through decentralized exchanges (DEXs), reducing the need for centralized exchanges. This means in certain cases, the ledgers<\/a> behind the chains must be connected too, although the extent to what is observed by nodes may be limited.((Daml Docs - Ledger Interoperability<\/a>))<\/p>\n\n\n\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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See Related: <\/em><\/strong>REALM Receives $10M to Accelerate Play2Own Sustainable Metaverse<\/a><\/p>\n","post_title":"Buying Metaverse Land Is Dumb Believes Mark Cuban","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"buying-metaverse-land-is-dumb-believes-mark-cuban","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/ethereum-name-service\/","post_modified":"2023-04-11 00:11:38","post_modified_gmt":"2023-04-10 14:11:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6589","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6519,"post_author":"1","post_date":"2022-08-09 22:16:48","post_date_gmt":"2022-08-09 12:16:48","post_content":"\n

What Is Blockchain Interoperability?<\/h2>\n\n\n\n

Blockchain interoperability is the compatibility between blockchains, allowing for features and information to be shared between chains. <\/p>\n\n\n\n

Interoperability is achieved through sidechains<\/a>, oracles, bridges<\/a>,((Gemini - Cross-Chain Interoperability: What it Means for Blockchain<\/a>)) and interoperability protocols<\/a>. There are various other methods all with the goal of allowing communication between chains.<\/p>\n\n\n\n

Interoperability allows for tokens<\/a> to be traded across various chains through decentralized exchanges (DEXs), reducing the need for centralized exchanges. This means in certain cases, the ledgers<\/a> behind the chains must be connected too, although the extent to what is observed by nodes may be limited.((Daml Docs - Ledger Interoperability<\/a>))<\/p>\n\n\n\n

Interoperability can also be used to connect central bank digital currencies<\/a> into decentralized applications<\/a> (dApps) and blockchains,((World Economic Forum - Defining Interoperability<\/a>, Page 3)) bringing the banking world to the decentralized world.<\/p>\n\n\n\n

Making Blockchains Interoperable<\/h2>\n\n\n\n

Cosmos implements the inter-blockchain communication (IBC) protocol, essentially a bunch of cross-chain bridges connected centrally to the Cosmos Hub. This hub allows different blockchains to communicate with each other, through a peg-zone (two-way bridge). Polkadot is similar to Cosmos, it's a multichain that connects blockchains and parachains into a larger ecosystem through bridges.<\/p>\n\n\n\n

Quant doesn't have its own blockchain, rather it uses the \"Overledger Protocol\" running on top of blockchains allowing them to create mApps (similar to dApps). These applications use various blockchains for different parts of it,((Quant Network Review: MApps as the Bridge to Real Adoption<\/a>)) such as one for payments and one for smart contracts.<\/p>\n\n\n\n

Oracles such as Chainlink bridge the on-chain and the off-chain world by providing blockchains and smart contracts<\/a> with real-world data.<\/p>\n\n\n\n

Protocols such as Wanchain wrap<\/a> tokens, this allows non-native tokens<\/a> to be coded in a way that allows for them to be traded on other blockchains.<\/p>\n","post_title":"Blockchain Interoperability","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"blockchain-interoperability","to_ping":"","pinged":"\nhttps:\/\/www.thedistributed.co\/smart-contracts\/","post_modified":"2022-08-09 22:18:54","post_modified_gmt":"2022-08-09 12:18:54","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6519","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6546,"post_author":"1","post_date":"2022-08-08 22:13:51","post_date_gmt":"2022-08-08 12:13:51","post_content":"\n

What Is A Sidechain?<\/h2>\n\n\n\n

A sidechain is a blockchain that runs independent of the mainchain but is interoperable<\/a> through a two-way bridge<\/a>.((Ethereum - Sidechains<\/a>)) <\/p>\n\n\n\n

A majority of sidechains exist to fix issues on the mainchain such as scalability and speed. They focus on one specific issue faced by the mainchain, rather than trying to solve a bunch of problems. <\/p>\n\n\n\n

Sidechains can also be used to take a load of the mainchain by running decentralized applications<\/a> (dApps), there is no limit to how many sidechains can run to the mainchain.((CryptoCom University - What are Sidechains? \u2013 Scaling Blockchain on the Side<\/a>)) Although, the more sidechains, the more complex the blockchain design becomes.<\/p>\n\n\n\n

Sidechains were first proposed by cypherpunk and inventor of hashcash, Dr. Adam Back in 2014 through a publishing titled \"Enabling Blockchain Innovations with Pegged Sidechains<\/a>\", where he described sidechains as enabling \"bitcoins and other ledger assets to be transferred between multiple blockchains\"<\/p>\n\n\n\n

How Do Sidechains Work?<\/h2>\n\n\n\n

Sidechains function by having a \"lockbox\" on each side of the bridge. Users send their tokens<\/a> to these lockboxes, where once verified that they've been received will release the token or an equivalent on the other side of the bridge, locking<\/a> the original token. The steps are reversed if you want to switch the tokens once again.<\/p>\n\n\n\n

Sidechains create their own security protocols<\/a>, which usually incorporate Byzantine Fault Tolerant methods ensuring consensus<\/a> is maintained,((EthHub - Sidechains<\/a>)) they're also firewalled, so a breach on one chain won't affect the other.((Enabling Blockchain Innovations with Pegged Sidechains<\/a> - Page 6))<\/p>\n\n\n\n

On the other hand, some sidechains benefit from the security provided by the mainchain in a parent-child relationship such as Ardor<\/a>.<\/p>\n\n\n\n

\"\"
How Do Sidechains Work?((Blockchain Hub - Blockchain Scalability: State Channels, Sidechains & more\u2026<\/a>))<\/figcaption><\/figure>\n\n\n\n

Are Sidechains Layer 2 Protocols?<\/h2>\n\n\n\n

Sidechains, unlike Layer 2<\/a> protocols, do not relay state changes and transaction data back to the mainchain.((Ethereum - Sidechains<\/a>)) Layer 2 solutions are also built on top of Layer 1s and benefit from its security, consensus, and nodes<\/a>.<\/p>\n\n\n\n

A sidechain is a chain created for a specific purpose whilst Layer 2 applications are a patch for existing Layer 1s faults.((CoinTelegraph - Deconstructing Sidechains \u2014 The Future Of Web3 Scalability<\/a>))<\/p>\n","post_title":"Sidechain","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"sidechain","to_ping":"","pinged":"","post_modified":"2022-08-08 22:13:57","post_modified_gmt":"2022-08-08 12:13:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6546","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":6518,"post_author":"1","post_date":"2022-08-07 23:17:52","post_date_gmt":"2022-08-07 13:17:52","post_content":"\n

What Is A Wrapped Token?<\/h2>\n\n\n\n

A wrapped token transfers the value of one cryptocurrency across to another chain. They are tokenized<\/a> versions of tokens.<\/p>\n\n\n\n

A token allows for information and value to be stored, transferred, and verified within a blockchain. These tokens can be fungible, or non-fungible. Tokens don't function on other chains, so they are pegged to the value of the original token, in a way native to another chain. <\/p>\n\n\n\n

A wrapped token helps interoperability<\/a> between chains by creating a bridge<\/a> for tokens from one chain to another. This makes decentralized finance<\/a> (DeFi) and decentralized applications<\/a> (dApps) more accessible, as users don't have to sell and buy tokens depending on what they're doing.<\/p>\n\n\n\n

How Do Wrapped Tokens Work?<\/h2>\n\n\n\n

Wrapped tokens are \"wrapped\" into a digital vault, typically owned by a custodian, which would then mint the wrapped token on another chain. These custodians can be smart contracts<\/a>, decentralized autonomous organisations<\/a> (DAOs), multisig wallets, or merchants.((Binance - What Are Wrapped Tokens?<\/a>)) The custodian would need to possess equal amounts of whatever token is being wrapped such at Bitcoin, with proof of the reserves shown on-chain.<\/p>\n\n\n\n

In the case of Wrapped Bitcoin (wBTC), a user will send BTC to the custodian (multisig contract owned by the wBTC DAO) who will mint the coin on the other chain based on how much was recieved. If the user wants to recieve their standard BTC back, the user will put a burn<\/a> request to the custodian which will release the BTC from the reserves.((wBTC Network - How It Works<\/a>))<\/p>\n\n\n\n

What Are Wrapped NFTs?<\/h2>\n\n\n\n

A wrapped non-fungible token<\/a> (NFT) allows for greater use cases of NFTs, which are tokens that have distinctive features separating it from other tokens.<\/p>\n\n\n\n

In the case of Ethereum, a wrapped NFT expands its functionaility by enabling ERC-721<\/a> tokens to be wrapped as ERC-20<\/a> tokens. This allows them to be used like a cryptocurrency((EIP3349 - Generalized interface for ERC721 wrapping and unwrapping<\/a>)) such as for collateral and payments, while maintaining their non-fungibility as new tokens can't just be minted or mined.<\/p>\n","post_title":"Wrapped Tokens","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"open","post_password":"","post_name":"wrapped-tokens","to_ping":"","pinged":"","post_modified":"2022-08-07 23:17:56","post_modified_gmt":"2022-08-07 13:17:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=6518","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

1 … 17 18 19 20 21 … 41

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
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