Communication between different cryptocurrencies can change their ecosystem

Communication between different cryptocurrencies can change their ecosystem

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It was back in 2009 when Bitcoin first appeared on the market and stirred things up. Ever since then, the community around it has grown, as well as the number of new blockchains that emerge every year. In 2017, and with their number still in the hundreds, CoinMarketCap figures show that “the estimated total worth of cryptocurrencies was almost 100 billion dollars”. As of this year, there are more than 1300 cryptocurrencies available and in another ten years, according to the World Economic Forum, as much as 10% of the world’s GDP will be stored in them.

Yet due to the different protocols most of the blockchains use, there is still a limitation on the communication between them. And if the public is to adopt digital currencies, this is the challenge the industry needs to face.

Bridging the gap

Until now, the best solution was automated trading bots and exchange websites. They made exchanges between different cryptocurrencies and fiat currencies a lot easier. Still, they are not as useful to the average consumer who would prefer to use, for example, Ethereum to buy a computer from a seller accepting Bitcoin. In such a case, the buyer would have to convert his Ethereum coins into Bitcoins through an exchange in advance. Which would take time, not to mention that the buyer would have to look up the seller and find which currencies they accept?

Now, imagine what could happen if you could use a platform which has a pool of digital currencies available. By having the platform make the exchange within itself, there is no longer a need for a large waiting period. In the above scenario, the consumer enters a shop with their wallet filled with Ethereum, makes the transaction, and the seller gets paid in Bitcoin in mere seconds and without any additional cost.