Layer-1 blockchain platform Wire Network introduced the launch of its blockchain interoperability protocol referred to as Universal Polymorphic Address Protocol (UPAP).
In the Web3 ecosystem, which is relatively nascent to the bigger crypto market, the first interplay happens over digital items and NFTs. However, the rising variety of Web3 platforms lack interoperability which might be an enormous roadblock to a seamless Web3 expertise. Wire Network goals to alter that with its common pockets handle protocol.
Blockchain interoperability is the power to share data throughout completely different blockchain networks with out restrictions. With the evolution of the blockchain trade, tons of of recent protocols and blockchain requirements have emerged. Thus, the interactions amongst completely different blockchains change into advanced. This is the place interoperability helps in bridging that hole.
The new UPAP protocol goals to deal with the interoperability drawback within the web3 ecosystem. While there have been a number of interoperability options up to now, most of them had been restricted to a selected ecosystem or a selected subject comparable to liquidation and fund transfers.
Interoperability could be achieved through completely different strategies comparable to cross-chains, sidechains, proxy tokens, swaps, and so on. Many blockchain platforms have centered on interoperability up to now, for instance, Polkadot permits completely different blockchains to plug into a bigger, standardized ecosystem whereas Cosmos employs an inter-blockchain communication (IBC) protocol to determine blockchain interoperability.
Related: Why cross-chain interoperability issues for DeFi
UPAP, then again, guarantees to supply an interoperability resolution with common readable pockets addresses to ship and obtain nonfungible tokens (NFTs), carry out cryptocurrency swaps, and add liquidity pairs throughout any blockchain.
The interoperability resolution removes a lot of the complexities concerned with present options and requires no bridges or oracles.
Anyone can combine the UPAP pockets right into a blockchain that makes use of Elliptic Curve Digital Signature Algorithm (ECDSA) cryptographic algorithm. Users might want to import the mnemonic code from their alternative of pockets and UPAP would create a common handle, utilizing which customers can ship any asset throughout any blockchain.