Coreum, a blockchain platform designed for enterprise use, is focused on creating an interconnected ecosystem that enables the secure and unrestricted movement of assets across different platforms.
Blockchain technology continues to attract interest beyond the cryptocurrency domain due to its characteristics of immutability, transparency, and traceability. In fact, 9 out of 10 businesses are either using or planning to use blockchain technology.
However, one challenge that the industry faces is the lack of interoperability between different blockchain networks. Fortunately, there are various projects actively working to overcome this challenge. One such project is Coreum, which enables seamless transfers of assets across different blockchain networks.
Coreum is a layer-1 blockchain that prioritizes scalability, security, and interoperability. It specifically aims to address integration challenges between ecosystems, particularly the XRP Ledger (XRPL). XRPL is known for its decentralized and open-source structure, as well as its fast and energy-efficient transactions. It has its native coin, XRP.
With the Bridge connecting Coreum and XRPL, developers have the opportunity to create decentralized applications (DApps) that are interoperable. This development has the potential to increase liquidity and improve the accessibility of XRPL.
Moreover, the two-way bridge allows real-world assets (RWA) to move from XRPL to the Cosmos blockchain network. This enables projects to take advantage of smart token technology, ISO 20022 messaging, and decentralized finance (DeFi) opportunities within Coreum.
By bridging to Coreum, XRPL assets can access new DeFi opportunities such as staking, earning interest through yielding, and participating in decentralized autonomous organization (DAO) governance. Coreum expands XRPL’s DeFi capabilities and enhances user engagement in a wider range of blockchain financial services.
Coreum aims to redefine the capabilities and efficiency of enterprise-level blockchain applications by adopting the ISO 20022 standard on-chain. This standardization enables seamless communication and integration between different platforms, streamlining transactions and allowing a wider range of financial services to operate on the blockchain.
Coreum has developed the XRPL Coreum Bridge, which facilitates uninterrupted asset transfers and inter-chain communication. This bridge establishes a direct conduit for asset transfers between XRPL and a variety of IBC-compatible blockchains. The IBC protocol is a framework designed to enable reliable communication and asset transfer between independent blockchain networks.
What sets the XRPL Coreum Bridge apart from other blockchain bridges is its decentralized and noncustodial operation. There is no central authority or intermediary responsible for holding or managing assets, ensuring that users have complete control over their assets at all times. This approach minimizes trust issues and reduces the risk of theft or loss resulting from centralized structures being hacked.
The bridge’s architecture consists of three main parts. The multisignature account serves as a safe deposit box that can be accessed with multiple keys. It interacts with the Relayer Set and uses a multi-signing function to process data and ensure security.
Relayers play a crucial role by listening to events on both XRPL and Coreum, and triggering actions on both chains. They are incentivized with transaction fees.
The bridge contract maintains the operational state and execution. It is also responsible for minting new tokens on Coreum.
The XRPL Coreum Bridge has successfully connected XRPL to the Coreum and Cosmos ecosystems. The Coreum team plans to expand the bridge’s functionality and integrate with additional blockchains to support a more connected crypto ecosystem.
Increased interoperability opens up possibilities for blockchain technology beyond traditional boundaries and unlocks new potential outside of digital finance. This vision implies a more connected, efficient, and innovative blockchain ecosystem where the free movement of assets and seamless integration of services become the new standard.