The cryptocurrency market is enormous. With a total market cap of more than $476 billion and thousands of currencies, there’s no denying the huge potential it holds.
There are so many new ICOs and services, each delivering its own benefits, and the result is a multi-layered and rich marketplace of useful ideas and potential.
This blockchain-based ecosystem has become known as the Internet of Values and represents decentralization and connectivity on a huge scale.
The IoV could represent a new phase of the internet, based on sharing value and data across a network of decentralized systems and platforms. The blockchain is proving to have many use cases in a number of industries that make it a better choice than existing tech, and many believe it could truly revolutionize the way we manage data.
Unfortunately, in spite of all this, this network is fragmented and isolated. There is little co-operation between different blockchains, and exchanging value across cryptocurrencies can be challenging. It’s frustrating to see so many pioneering projects and platforms cut off from one another and unable to work together.
Despite being hugely promising, this market needs to overcome certain obstacles before it can reach its full potential.
The problems with the IoV
Right now, the huge numbers of cryptocurrencies and blockchain decentralized apps (dApps) exist more or less independently. There isn’t much overlap between them, and smart contracts are usually confined within the same blockchain.
This makes moving value across blockchains almost impossible in most cases, which seriously restricts the ability to build the kind of multi-dimensional financial ecosystem that exists in the real world.
Cryptocurrency is often hailed as a possible improvement on our existing financial institutions. But the truth is that crypto will likely not be able to challenge the fiat economy unless it can overcome these problems and find some way to allow easy communication and interaction between different blockchains.
Smart contracts are currently a great way of transferring value, but they only work on the same blockchain. There’s no good way to build smart contracts that work between two different blockchains, with different tokens.
What’s more, smart contracts aren’t well-suited to handling off-chain data. The Ethereum Virtual Machine, for example, is completely isolated. This means smart contracts built on the EVM have no way to access data outside of it.
For these reasons and more, the IoV isn’t developing the way it should and lags behind the fiat economy. These scalability issues have made it tough to build a credible crypto economy and they limit the scope of what can be done with blockchain technology.
Fortunately, there could be a solution.
FUSION is a new platform aimed at creating a public blockchain that all other blockchains can use. It reached its hard cap within 24 hours of the token sale and is ambitiously focused on upending the way blockchain technology and cryptocurrencies operate.
FUSION wants to build a system to bring all blockchains together. The aim is to overcome the divisions and separations by making it possible to transfer value across different cryptocurrency systems.
The platform uses distributed network nodes to control the private keys of tokens, which means transactions can take place between different blockchains. It’ll allow for cross-blockchain smart contracts, and even make it possible for smart contracts to work with off-chain data.
Developers will build their own apps and software on top of the FUSION platform. These could include things like using smart contracts for loans which operate without the need for trust. It can also allow users to borrow one kind of token or crypto asset while using another as collateral.
The long-term possibilities of this kind of project are truly exciting. It offers the chance to take the crypto economy up to the same level as fiat currency and opens up a whole host of new possibilities.
By making it possible to use off-chain data in smart contracts, FUSION will create a range of new applications for them. This broadens the scope of blockchain in general and could bridge the gap between centralized and decentralized organizations. It even creates the ability for blockchain platforms to respond to external events in real time, potentially transforming the way we use data.
It’s a new way to knit the crypto community together and create a system that isn’t so fragmented and is more interoperable.