Charles Hoskinson, co-founder of Cardano and CEO of IOHK, the blockchain and cryptocurrency research and development company, has announced “a major step forward” in the interoperability of proof of work blockchains.
This step forward comes in the form of a new research paper that they view as crossing a major milestone in the interoperability of blockchain.
This paper by IOHK Research is a major step forward in interoperability with proof of work blockchains https://t.co/GYOuE5qJQT a proof of stake one will follow
— Charles Hoskinson (@IOHK_Charles) November 2, 2018
IOHK’s research paper notes that within the last decade a plethora of cryptocurrencies have been created. Many of them, cover a wide array of different features, but the problem is, they all run on their own separate blockchains.
There has been much talk about how sidechains could allow blockchains to communicate and interact with each other, but so far there have been no decentralized constructions.
For this reason, IOHK released a paper, addressing the issue with their findings.
In this research paper, we introduced the first ever trustless construction that can be applied to proof of work sidechains. We also talk about how to build generic communications between different blockchains.
Sidechains Are The Solution
One of their proposed methods to interconnecting blockchains is to construct a 2-way pegged asset that can move from one blockchain to another while retaining its nature.
The paper outlines how this can be constructed in the programming language of Solidity. It also mentions that the construction is possible on different blockchains, as long as they follow 2 underlying properties.
The first property being that the blockchain has support for NIPoPoWs (Non-Interactive Proofs of Proof-of-Work). This includes proof-of-work cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Monero.
As for the second underlying property, the blockchain being targeted must be able to validate proofs. Therefore, any blockchain supporting smart contracts is sufficient.
The above explanation is only a brief overview of what IOHK’s research paper is about. The paper goes into great detail on the construction and implementation of sidechains via IOHK’s method. It is 20 pages long and filled with complex explanations, diagrams, and sophisticated algorithms.
Cardano: Slow But Steady Progress
The depth and sophistication of this paper is to be expected as IOHK has presented these papers for peer review from academic institutions, government entities, and corporations.
One of the organizations the paper was sent to is CCS, a leading international forum that discusses and reviews presented research on theoretical and practical aspects of computer security and innovative ideas.
In the past, Cardano and IOHK have been criticized for their slow moving process which requires everything they do to be peer reviewed, before development and implementation takes place.
However, Cardano’s approach should not necessarily be criticized, as taking time to get things right the first time is something the cryptocurrency space needs.
Afterall, the blockchain technology being developed now is of vital importance to the entire blockchain and cryptocurrency ecosystem, as well as the fintech revolution that’s taking place.