A new blockchain protocol from Interlay, a Web 3.0 Foundation-founded company promises to reduce collateral requirements in cross-chain applications.
Interlay says it received a grant from the foundation to build a bridge between Polkadot and Bitcoin (BTC). The latest paper to come out from this project, “Promise: Leveraging Future Gains for Collateral Reduction”, proposes a new protocol. Promise works a little Spotify, says Dominik Harz, one of the creators. A PhD student at Imperial College London, Harz is in Japan due to the Covid-19 outbreak. He believes that Promise sill do for transactions involving collateral, what Spotify did for the music industry.
Harz explains that initially potential beneficiaries could be exchanges and issuers of “wrapped” tokens.
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