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Interoperability Might be the Key to Ending Wall Street’s Skepticism on Cryptocurrencies

Blockchain technology has slowly transformed itself from being a buzzword of a niche market segment to becoming a conversational icebreaker in the global financial and economic discourse. 2017 was a particularly decisive year in the annals of blockchain technology as the performance of blockchain-backed cryptocurrencies dwarfed the returns on Wall Street to bring the emergent  technology to the attention of the mainstream market.

Blockchain-backed solutions are now springing up left, right, and center to cause massive disruptions across many fields. On the last count, there were more than 1,380 cryptocurrencies in the market – many of which are created with the sole purpose of using blockchain technology to solve a specific market need.

Most Profitable Coins and Cryptocurrencies to Mine in 2018

Copyright: Elnur / 123RF Stock Photo

Here’s why Wall Street is skeptical about blockchain

Despite the latent potential in the cryptocurrencies, it is disheartening that Wall Street is not particularly enthused about embracing the emergent technology. For one, the proliferation of different blockchain designed to serve different purposes waters down the disruptive power of blockchain. The different blockchains makes it hard to present a united front that can unleash the true power of blockchain for a paradigm shift.

Secondly, the multiplicity of blockchain also engenders problems such as lack of interoperability, communication, and scalability challenges. This piece looks at how a new entrant in the blockchain industry is working on a unified solution that can solve the limitations and challenges facing the industry in order to engender increase mass market adoption.

Meet the blockchain of blockchains

FUSION is a public blockchain that wants to build an inclusive cryptofinancial financial platform that takes cryptocurrency to the mainstream market of Wall Street. FUSION believes that allowing cross-chain and off-chain transactions possible will be instrumental to solving the scalability problem for blockchain as the world gradually makes the paradigm shift into cryptofinance for the Internet of Values.

FUSION is especially interested in making blockchain-based smart contracts truly smart by making them capable of rendering different kinds of financial logic and instruments. Hence, truly automated smart contracts will be used to execute complex finance applications such as banking, insurance, lending, wealth management, and derivatives trading among others.

FUSION also believes that the use of multiple triggering mechanisms can facilitate complex cryptofinancial applications using a combination of active triggers, time triggers, and event triggers. With FUSION, the FNS coin can serve as an intermediate currency for exchanges as cryptofinance starts to take center stage in the cryptocurrency market.

Here’s how cross chain transactions can help blockchain get on the fast track to Wall Street

Many institutional investors and conservative investors on Wall Street are staying on the sidelines of the cryptocurrency market because of the high level of fragmentation. There seems to be as many blockchains as coins in the market and the lack of interoperability keeps the industry stuck. Cross chain transactions and off chain transactions will allow the exchange of assets across different blockchain networks. Below are 4 key solutions that innovations such as FUSION could bring to the blockchain industry.

-Multicurrency payments
Multi-cryptocurrency payments and settlements can enable merchants accept the major cryptocurrencies such as Bitcoin, Litecoin, and Ripple and other altcoins. A multicurrency payment platform that allows instant cross chain exchange of cryptocurrency will encourage merchants to accept different coins and in turn improve the transactional value of cryptocurrencies beyond the interest of early adopters and speculators looking for a quick buck.

-Cryptocurrency investing and financing
Cryptocurrency exchanges, in their current forms are center of attraction for hackers, thieves, and regulators with an ax to grind. The fact that exchanges hold traders’ funds in addition to matching buyers and sellers of cryptocurrencies makes them magnets for fraud and the Internet is littered with too many stories of cryptocurrency exchanges that were hacked or disappeared to thin air with traders/investors’ funds.

With increased interoperability, cryptocurrency exchanges don’t have to be walled up isolated entities constituting a potential singular weak link for hackers. Wall Street can in turn expect to see increased tokenization of traditional assets as part of efforts to promote digital currency investing. FUSIONS has been aptly called the blockchain of blockchains and it has the capability to serve as a one-stop shop for gaining exposure into other cryptocurrencies without necessarily needing to run multiple accounts on multiple exchanges

-Cryptocurrency loans

Cryptocurrency investors can easily unlock additional value by lending their coins to cryptocurrency traders who in turn use the coins to participate in the markets. The investor still maintains ownership of the coins via a new brand of smart contracts but they get to earn addition revenue by lending their assets to traders. Traders will also find it easier to gain exposure to cryptocurrency markets without first having to save up huge amounts of money as an initial trading capital. The cryptocurrency investor is protected because the trader will still be under obligation to return the loaned cryptocurrencies irrespective of the performance of their trading activity.

-Cross chain swaps and trades

Increased interoperability in the blockchain ecosystem can also encourage the exchange, swapping, and trading of different cryptocurrencies without needing to trust a third party to facilitate the transactions. Take an instance in which two cryptocurrency investors, John and Jack own Bitcoin and Litecoin respectively. If John and Jack decide to exchange their cryptocurrency, John would send his Bitcoin to Jack and Jack would send his Litecoin to John. However, Jack might refuse to send the Litecoin after receiving Bob’s Bitcoin. The development of cross-chain swaps using the instrumentality of smart contracts can make it easy for John and Jack to create and sign a transaction using the ‘if this, then that’ trust protocol.

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