We are witnessing a move that could potentially reshape the landscape of blockchain technology on a larger scale.
nChain, a prominent player in the Web3 and blockchain sectors, has announced the creation of the ‘Universal Blockchain Asset.’
This announcement was made during the London Blockchain Conference, marking a key moment in the ongoing evolution of distributed ledger technology (DLT).
On a day that was already buzzing with discussions on the future of blockchain, Owen Vaughan, nChain’s Chief Science Officer, took the stage to unveil the ‘Universal Blockchain Asset.’
His presentation discussed the critical role of blockchain technology in the Web3 ecosystem and the challenges that must be addressed to realize its full potential.
One of the main obstacles highlighted was the accumulation of competing DLT offerings or blockchains, which has led to a market of isolated, non-interoperable databases.
This fragmentation, Vaughan argued, hinders the ability of businesses to leverage blockchain technology on a meaningful scale.
Owen Vaughan, with his extensive background in blockchain research and development, spearheaded the session.
His insights into the history of blockchain and its transformative impact since Bitcoin’s inception painted a vivid picture of the technology’s journey.
Vaughan’s personal anecdote about his wedding in Argentina, where he faced challenges due to economic instability and the complexities of cross-border transactions, was a compelling illustration of the need for a universal blockchain asset.
He began by recounting his wedding in Argentina and described the difficulties he and his partner faced when managing their wedding expenses, which involved multiple currencies and financial systems.
The complexity and inefficiency of the existing financial infrastructure became apparent as they navigated through cumbersome bank processes and faced exorbitant fees for currency conversion and transfers.
This Universal Blockchain Asset (UBA), wouldn’t be reliant on any third party to transfer, swap or move an asset within two chains.
“Any system that relies on a third party burning my asset? There’s something fundamentally wrong with that.” Vaughan argued.
Instead, he proposed the term “transfer,” which refers to transferring assets between chains using the Universal Blockchain Asset.
The Core components of the UBA (Universal Blockchain Asset) will be built and maintained on three distinct layers;
- An Interoperability Protocol at the heart of the UBA system will allow different blockchains to communicate with each other.
- Asset Standardization to ensure that assets can be recognized across chains and retain their value regardless of the chain they reside on.
- Smart contract functionality is designed to execute predefined conditions, ensuring transaction efficiency.
“It’s remarkably simple,” said Vaughan.
“The simplest ideas are the hardest. The ones that were staring at you in the face all along. It’s also why I know it works. I know it’s secure. As long as you understand how this protocol uses blockchain outputs, you’ve understood everything,” he added.
The technical approach will also include the development of a cross-chain transaction layer that sits atop existing blockchains. This layer would act as a bridge, translating and forwarding transactions between different networks.
Vaughan’s vision is to create a universal system where blockchain assets are as easily transferable as email or information on the internet.
By doing so, nChain hopes to unlock the true potential of blockchain technology, making it more accessible and useful for businesses and consumers alike.
To view the full documentation presented by nChain, visit Universal Blockchain Asset.pdf
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