The earlier types of cryptocurrency wallets were developed based on a single blockchain design to simply handle certain types of wallet transactions. This had some level of limitations surrounding how transactions were done using such a wallet.
Therefore, with the constant evolution of blockchain technology, came interoperability.
What is blockchain interoperability?
Blockchain interoperability is not a set of rules cast in stone. Hence it refers to a broad range of techniques that allow different blockchains to listen to each other, transfer digital assets in form of NFTs and other data between one another, and enable better collaboration and coordination in a laid down protocol.
There are several open-sourced standards for developers to easily build secure cross-chain services and applications.
These blockchains create a universal messaging interface (User interface) with the introduction of smart contracts that can communicate across multiple blockchain networks, eliminating the need for developers to write custom code for building chain-specific integrations.
This has literally changed the way blockchain wallets and applications work in recent times. Some of the main use cases of interoperability are as follows:
- It is now possible to transfer certain cryptocurrency’s liquidity from one blockchain to another thereby making it seamless for transactions.
- It is also now possible for users and traders to trade an asset on one blockchain for another asset on another blockchain just by using the available protocols to execute the transaction.
- The powerful tool of decentralized financing also enables users and traders to borrow assets on one chain by posting tokens or NFTs as collateral on another chain. Thereby allowing cross-chain transactions and encouraging an increased use case for blockchain technology in the financial sector.
Why is cross-chain interoperability important?
The need to use cross-chain architecture is basically to facilitate interoperability, which enables two or more blockchains to trade off their efficiencies, decentralization, features set, and security.
This would ultimately improve the chain efficiency and reduce fragmentation, allowing users and features to flow more freely across multiple blockchains.
Due to the expanding nature of the blockchain industry, there is an overwhelming increase while we are also witnessing the launch of new types of blockchain protocols where each is empowered with a unique approach, new consensus protocols, and an entirely new set of capacities to host different applications.
However, in as much as there is a need to integrate a multi-chain network system, everyone within the ecosystem also has a role to play by ensuring that Cross-chain bridges must be transparent about risks and resist the temptation of growth at all costs; they must also publish bug bounties for more developers to help find and track bugs with the system.
Why is Klever 5 (K5) enabling multiple blockchains?
The fact that the Klever crypto wallet ecosystem had exceeded 3 million users made it clear that there is a need to expand the use cases, but also simplify the use of new features.
The new K5 Wallet is a simple, secure, and versatile self-custody crypto wallet that in the future will support all major blockchains.
Such that users and customers can use various blockchains interoperably without the need for moving coins and tokens from one platform to another. The wallet would ensure that a seamless transaction can be made from our wallet conveniently.
The presence of the decentralized app browser in the K5 wallet would to a large extent mitigate the challenges associated with moving funds from one wallet to another.
There is also the instance of multiple inbuilt applications which would give the users access to flight reservation platforms like Travala and would not restrict the users’ opportunity to whatever blockchain for executing the transactions.
How many blockchains will K5 support?
The Klever team has never relented on its ability to further develop and expand its interoperability capabilities.
This has led the team to continue to improve and tweak the wallet ecosystem to accommodate multiple blockchains with the capability to interoperate in a seamless manner.
The K5 wallet has the potential to be compatible with Ethereum, Tron, Binance Smart Chain, Polygon, Kusama blockchains, Digibyte, Doge, Litecoin, XRP, BCH, REEF, HUOBI, and more. It would also interact with the other parachains within the chains to efficiently interoperate inside the wallet.
In conclusion, according to the CEO of Klever, “your limit is you”, which can simply be translated to: the Klever team will spare no efforts to increase the number of blockchains it would be able to support in subsequent years.
It is indeed a Klever thing to do.