Interchain™ patent in the pocket.
Only a few days ago the news came out that Dragonchain is awarded a U.S. Interchain™ patent. Over the last couple of months Interchain smart contracts has been a big part of Dragonchain’s roadmap goals. So far they managed to deliver all of those goals on time. Right now enterprise clients can already work with Ethereum, Ethereum Classic, Bitcoin and NEO Interchain Smart Contracts. In the coming months Hyperledger will be (one of) the first ones that can proudly say they are added to that respectable list.
”Dragonchain is excited to announce that Hyperledger is joining our Interchain Network in the coming months”.Interchain Everything
Interchain, interoperability, web 3.0, a lot of buzz.
Interoperability is high on the list for many projects around the world. However many, if not all of them, are still in a speculation phase. Besides Dragonchain there isn’t really a working solution today. Projects such as Cosmos and Polkadot are still in testnet. Blocknet, Aion, Lamden, Metronome, ICON, Wanchain, ARK, Quant and Block Collider are just a few examples of projects trying to win this race. And all of them have their own unique approach of doing so. Therefor it is no surprise that the U.S. patent for Interchain awarded to Dragonchain gained some traction. Hacked.com and Yahoo Finance were some of the more well known media companies who covered the news online. Surprisingly you could say it is a bit too quiet given the importance of this development.
What is interchain?
To understand the importance of interchain, you need to know why it is such a big deal. And what is the difference between private blockchains, public blockchains and hybrid or consortium blockchains. What many projects are trying to do, is what Dragonchain already can do today. Whether it is watching transactions on other blockchains, move tokens and currencies freely without the need of an intermediary or invoking the right blockchain for the right solution. Let’s have a look at this video first before we dive in to the different blockchains.
Bitcoin is the best example of a public blockchain because we all know it. Bitcoin is permissionless. Traditional currencies and forms of money require permission to use (from banks, financial institutions, governments). Bitcoin requires no permission from anyone and is free and open to use globally. There are no borders or limits with Bitcoin. Bitcoin is immune to seizure: Nobody can confiscate your Bitcoin since you own it; it’s not housed at any central bank or company. You can be your own bank with Bitcoin. Bitcoin is censorship resistant: Using a computational algorithm called Proof of Work (PoW), no one is able to block or censor your transactions. Bitcoin is decentralized: The network is distributed globally among many thousands of nodes (computers) and millions of users where you don’t have to rely on trusted third-parties.
The company writes and verifies each transaction on their own private blockchain. This allows for greater efficiency. And transactions on a private distributed ledger will be completed significantly faster. Though it does not offer the same decentralized security as its public counterpart. Trusting a business to run a blockchain is no more dangerous than trusting it to run a company without a blockchain. The company can also choose who has read access to their blockchain transactions, allowing for much greater privacy than a public blockchain. A private blockchain is appropriate to more traditional business and governance models, but that isn’t a bad thing. Just because it is unlikely to revolutionize our world, doesn’t mean it can’t play a role in making the world better.
Consortium blockchains. Or Dragonchain’s hybrid blockchain.
Since we are talking about Dragonchain’s interchain in this article, I will use their unique hybrid private-public architecture as an example as well. Their hybrid public-private distributed ledger technology allows users to selectively share parts of their data with a public blockchain, without risking the security of their private business data. Dragonchain uses 5 Levels of Trust. Level 1 business nodes is what enterprises, developers and/or companies use to build whatever they want. Every L1 business node is its own private blockchain.
Dragon Net is a scaled approach to consensus that utilizes independent network verification nodes that are provisioned by the Dragonchain Community. (L2-L5 nodes) The verification nodes verify blocks from private business nodes (Level 1 / L1 Nodes) in a marketplace based on scarcity of DDSS (Time). Each node at each level has it’s own blockchain and is non-homogenous. Meaning all nodes do not contain the same information.
- Business (Approval) Verification
- Enterprise Governance (Validation) Verification
- Network Diversity Verification
- External Partner (Notary) Verification
- Public Checkpoint Verification. Also known as Proof of Existence on public blockchains such as BTC, NEO, ETH or ETC.
Why use interchain smart contracts?
All of these blockchains. Whether they are public, private or hybrid. Or applications build on platforms like Hyperledger. They all need to connect with each other. Users have the freedom to choose one or more blockchains for their specific business needs thanks to interchain. According to Joe Roets it enables you to combine the best characteristics of each blockchain.
”A small grocery store uses multiple suppliers to get their produce. Each supplier uses a different blockchain to complete their transactions on; one uses Ethereum, another uses NEO, and another uses Ark. The store does not want to commit to one blockchain over another. Instead, the store uses Dragonchain to monitor each blockchain. With Dragonchain’s Interchain, the store is able to monitor transactions and interact with different blockchains all in one place. And implement business logic agnostic to whatever blockchain is being used”.Jonel Cordero, CMO at Dragonchain.
Interoperability is the power to share information freely across different blockchains. In a fully interoperable environment, if a user from another blockchain sends you something on your blockchain, you will be able to easily read, comprehend, and interact with or respond to it with little effort. Interchain smart contracts recognizes the blockchain and can connect with it. For example the NEO interchain smart contract connects any ERC20 token projects with any NEP-5 token projects. It makes Ethereum tools easier and accessible to NEP-5 token projects and NEO tools easier and accessible to ERC20 token projects.
”The Interchain Smart Contract watches a blockchain of the user’s choice (e.g., Ethereum or NEO) for incoming transactions or fire smart contracts on Dragonchain or another public blockchain. The Interchain would then move tokens or currency on other chains and use a public chain for transparent processing of selective parts of the user’s business logic”.
Some misconceptions wiped away by Joe Roets, CEO of Dragonchain;
- It’s not similar to an exchange – it’s not about currency transfer or custody of your tokens – it’s about business and processing of business logic across chains – Dragonchain wouldn’t have access to your ETH or NEO or tokens on each chain.
- It’s also partially open source, and the open source codebase will be integrated into DragonNet soon.
- Also, there will be an on-premise instance available if there was a system that you didn’t want to run in cloud.
Interchain, simply put, is the way all blockchains, both public and private, can connect and interact in a secure way.
- By allowing users to operate on multiple blockchains, Interchain reduces the strain on both large public blockchains and utility chains alike. This keeps transaction speeds high, while also lowering operational costs.
- Interchain expands users’ selection of tools to improve scaling.
- Interchain allows users to benefit from the features of specialized blockchains, built exclusively to respond to issues such as supply chain and quantum computing. Before Interchain, many of these utility chains went ignored because of their focused, but limited set of capabilities.
- Now, users have the option to leverage both the specialized features of utility chains and the all-purpose capabilities of public blockchains, giving them the best of both worlds.
- With Interchain, users can retain complete control of their data, keeping sensitive business logic and smart contracts proprietary. They can keep sensitive processing on a private network, and selectively share data or business logic on a public chain for transparency.
- The ability to publish data, transactions, and business logic to multiple blockchains provides the combined security of all blockchains.
“We envision a multi-chain, multi-network, and multi-token future for blockchain-based computing,” said Matthew Roszak, co-founder and chairman of Bloq, a Dragonchain advisor. “Interchain reflects this future by providing the necessary bridge between public and permissioned blockchain, facilitating a best-of-breed approach between the two environments.”
Different blockchains or distributed ledgers specialize in different types of transactions. And they handle different amounts of data and processing power. One chain specializes in payments, the other one in storage. There are also networks for different groups. Take religious and community organizations or national governments. They all have their own chains and networks. And Dragonchain recognizes that. Whether is it hashpower, proof of stake, quantum resistance, supply chain, payments, governance, storage, privacy or stablecoins. Whether they are other platforms like mentioned earlier such as Hyperledger or ARK. Whether it is trustless verification, selective processing, Identity. Or even legacy systems, email, internet of things, WordPress or enterprise resource planning. Dragonchain will accelerate the creation of the new internet of value thanks to their U.S. patented interchain. And it invites the entire crypto and blockchain community to vote on which ones to add first.
”It’s a capability to connect networks of value. So Ethereum or bitcoin can interchain instead of utilizing lightning/raiden network to solve those issues without the cons. You can interchain a legacy network to ground transactions in the security of multiple public chains”, according to Dragonchain CMO Jonel Cordero.
Blockchain Business Magic.
If there is a valid business need, clients simply can request interchain with any blockchain and get priority. But with Dragonchain, you can not only interchain between any blockchain of your choice. You can also keep your sensitive business logic private at all times. Dragonchain right now is the best working example out there that truly shows the power of blockchain. Joe Roets, co-founder and CEO of Dragonchain, is rapidly building what he already envisioned years ago. One day many years ago Dragonchain was a secret project inside of Walt Disney. Today, thanks to the incredible team behind him, Dragonchain is ready to deliver Blockchain as a Service on its own.
Surprises up their sleeves.
If you think we’re done here with Dragonchain, you’re wrong. This proud U.S. bases blockchain company is working on several other products. Dragon Factor is one of them with a lot of potential. And all of their products and services combined creates the true unlimited power of blockchains.
Dragon Factor is an identity service for blockchain applications. It deploys a decentralized authentication model, which allows users to own their data and control who has access to it. Dragon Factor incorporates risk-based determinants from third parties to provide additional information to make decisions.
Dragon Factor provides the ability to filter access control to applications providing selective exposure of factors of identity. These factors are based on external vetting done by third parties. This allows them to provide verification for business transactions, for example, certain transactions above a certain amount can only be conducted by a customer that has been verified through a Know Your Customer (KYC) service. Dragon Factor gives users increased control and ownership over their data, as well as a GDPR-compliant blockchain solution that doesn’t expose personal identifiable information. It also uses trusted third parties to verify all of an individual’s information on a single app.
Dragon Factor allows users to monetize identity services, authenticate or provide an identity service, all while protecting personal information from tacking. Partners eliminate liabilities such as the retention of PII, sensitive, or regulated identity information.
Centricity is one example of a business ready to use Dragon Factor to provide users with GDPR-compliant decentralized authentication. Permitting them to have autonomy over their data and control over who may access it. “This is especially important given the sensitivity of trade and compliance data in the food sector,” said Filip Hantson, vice president strategic business development at Dragonchain. “Third parties may set conditional criteria for blockchain-based outcomes. For example, only permitting transactions over a certain threshold to be conducted by verified customers.”
Dragonchain academy launch in a week.
Make sure to push the subscribe button below. It will send you a push notification when a new post is published. Somewhere next week I will publish a multi-page article about the Dragonchain academy. The academy is planned to launch by the end of this month. And this might be everything Dragonchain needs to attract developers from all blockchains to come up with their own blockchain business magic. From setting up your own watcher or publisher contracts to the creation of your own token or currency. Perhaps it’s even time to finally scale Bitcoin and other blockchains better, easier, more flexible and faster?
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