Cryptocurrency networks are, by default, unable to communicate with one another. With the help of numerous projects, those issues can be overcome. Chaosnet is a relatively new solution, but one that has potential.
Especially in terms of cryptocurrency trading, a cross-chain solution would be favorable. A component or service which doesn’t require middlemen would be ideal.
Chaosnet Offers a Solution
Ultimately, such developments will lead to decentralized trading platforms.
Chaosnet, a technology running on top of RenVM, is one of the technology stacks to keep an eye on. It allows for cross-chain interoperability between Bitcoin, ZCash, Ethereum, and Bitcoin Cash.
Although the technology is still in early testing, the developers have a clear vision. They aim to bring this cross-chain interoperability to the decentralized finance industry.
In its current form, Chaosnet has not been audited or refined. However, it will support the four aforementioned cryptocurrency ecosystems.
Under the hood, RenVM is a virtual machine replicating itself over a decentralized network. This is achieved through its Darknodes model.
The added bonus is how the network utilizes zero-knowledge proofs. Everything about this infrastructure is kept hidden from everyone.
Without this technology, it would not be viable to manage private keys across different blockchains. Nor would it be advised to shift tokens between these respective ecosystems.
As developers focus their attention on decentralized solutions, it is a matter of time until a shift of power occurs.
Centralized trading platforms will remain popular due to convenience. Those looking for secure solutions will explore options like Chaosnet and others.