Transactions between different blockchains has historically been something only provided by centralized exchanges, until now.
As of Oct. 24, 2018 the first Federation Blockchain, Mallow allowing for cross-chain transactions between Bitcoin Cash (BCH) and Ethereum (ETH) was launched by iBitcome and partnered exchange, DEx.top.
A Federation Blockchain uses an open source protocol known as Open Federated Gateway Protocol (OFGP) to facilitate transactions between blockchains through the use of side-chains. The protocol uses a consensus process to “open the door to cross-chain cooperation through an open and transparent consortium blockchain”
This consortium gateway maintains the efficiency of transactions associated with centralized exchanges while providing the security and trustless elements of decentralization. Users are given the task of preselecting the most trusted nodes to carry out transactions to
“promote a healthy competition in the consortium blockchain to provide a more secure, faster, and lower cost gateway service.”
Essentially, decentralized exchanges will now be able to support exchange between different token types resolved on the blockchain.
iBitcome – existing wallet provider – claims a “decentralized cryptocurrency wallet, that does not hold your private key” “committed to providing secure and convenient payment services.” The startup supports multiple cryptocurrency wallets using “AES-128-CTR encryption algorithm.”
The new blockchain, Mallow, will use the creation of new token WBCH to carry out the cross chain transfer. Side-chains can only be reliant on one of the main chains to operate, thus WBCH is pegged to the value of BCH to maintain efficiency.
Mallow is also equipped with a block explorer allowing for transparency of transactions.
iBitcome hopes to continue to build with the OFGP to provide transactions between other major blockchains such as BTC and EOS. Future projects will ideally help with scalability and transfer of value between all hosted wallets.
Scalability, Decentralization, and Security are topics of constant concern in the cryptocurrency space. Hopefully, the OFGP can offer more solutions in the near future.