Layer 1 blockchain platform Wire Network has announced the launch of its blockchain interoperability protocol called Universal Polymorphic Address Protocol (UPAP).
In the Web3 ecosystem, which is relatively new compared to the larger crypto market, the main interaction is through digital goods and NFTs. However, a growing number of Web3 platforms lack interoperability, which can be a huge barrier to seamless Web3 usage. Wire Network aims to change this with their Universal Wallet Address Protocol.
Blockchain interoperability is the ability to exchange information without restrictions between different blockchain networks. With the development of the blockchain industry, hundreds of new blockchain protocols and standards have emerged. Thus, the interaction between different blockchains becomes complex. This is where interoperability helps bridge this gap.
The new UPAP protocol addresses the problem of interoperability in the web3 ecosystem. While there have been several interoperability solutions in the past, most have been limited to a specific ecosystem or a specific issue such as liquidation and fund transfer.
Interoperability can be achieved through various methods such as cross chains, side chains, proxy tokens, swaps, etc. Many blockchain platforms have focused on interoperability in the past, for example, Polkadot allows different blockchains to connect to a larger standardized ecosystem, while Cosmos uses the Inter Block Communication (IBC) protocol to ensure blockchain interoperability.
Why Interconnection Matters to DeFi
UPAP, on the other hand, promises to offer a solution for interacting with universal readable wallet addresses to send and receive non-fungible tokens (NFTs), perform cryptocurrency swaps, and add liquidity pairs on any blockchain.
An interoperability solution removes most of the complexities associated with existing solutions and does not require bridges or oracles.
Anyone can integrate an UPAP wallet into a blockchain using the Elliptic Curve Digital Signature Algorithm (ECDSA) cryptographic algorithm. Users will need to import the mnemonic code from the wallet of their choice, and UPAP will create a universal address with which users can send any assets through any block chain.
Credit : cointelegraph.com