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A Better Payment System, Decentralized.
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Mattr One
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Blockchain moves at a notoriously quick pace, and as such, so too does the terminology that gets used by blockchain enthusiasts. Oftentimes, blockchain lingo can be misused and misunderstood because a lot of it is downright confusing. As Embr Labs builds out its unified liquidity layer, the backbone of the SmartSwap API, it’s become increasingly important to discuss ‘interoperability’ and the terms that fall under that umbrella.
In an influential Reddit post last year, Ethereum co-founder Vitalik Buterin emphasized the critical role of a multichain blockchain ecosystem and specifically highlighted the inherent security challenges associated with cross-chain bridges, underscoring that realizing genuine decentralization and robust security in cross-chain activities continues to be a major hurdle.
Terms such as interoperability, multichain, and cross-chain get thrown around interchangeably, but in order to understand the future direction of DeFi, it’s important to differentiate them and define each. Today, we will dive into these concepts, and a new term, ‘interchain’, which defines a new path to achieving seamless blockchain interoperability that helps establish Web3 as the universal development environment it can be.
Before we dive deeper into these concepts, lets define some terms:
Cross-chain, as a general concept, encompasses all forms of interaction between different blockchains, including the use of wrapped assets (such as in bridging) and various other operations. The most prevalent form of cross-chain interaction is bridging. These bridges facilitate activities across chains by generating wrapped versions of native tokens on the destination chain. In simple terms, a user deposits native tokens on Chain A, the bridge acknowledges this deposit, and then issues equivalent wrapped tokens on Chain B. Despite their benefits, bridges come with drawbacks, including potential security vulnerabilities and constrained liquidity.
The concept of multichain entails the distribution of decentralized applications (dApps) over several blockchains, enabling users to engage with an app on their chain of choice. Prominent initiatives such as Uniswap have adopted this method to enhance accessibility.
Consider a coffee shop chain aiming for global expansion: establishing branches in various nations, recruiting staff, and organizing supply chains to attract new patrons in those locations. This is analogous to a dApp initially launching on a blockchain like Ethereum and then extending to additional blockchains, adapting to the unique attributes and technical specifications of each chain to provide a uniform experience across different platforms.
The extension of Uniswap to various blockchains has required an in-depth and thorough analysis of diverse bridge protocols. Understanding the intricacies of these bridge systems, the Uniswap Foundation’s Bridge Assessment Committee devised a detailed framework to assess six bridge protocols. Consequently, it authorized Axelar and Wormhole for cross-chain governance purposes, namely, to implement updates across its multichain deployments.
The term interchain is a term that originated in the Cosmos ecosystem to describe applications built with a chain-agnostic approach that spans all Web3 ecosystems. In a global interchain ecosystem, dApps incorporate logic from multiple blockchains, creating an inclusive platform where users from any chain are welcome.
This perspective leaves behind tribalism and rigid compartmentalization of otherwise siloed ecosystems, moving towards Web3 as a universal development environment, with a more inclusive and interconnected ecosystem.
Interchain-native applications are developed from the ground up to be indifferent to specific chains, focusing on reaching users, amalgamating logic and network effects, and connecting assets across various chains. Rather than being limited to a single chain, these apps are crafted to leverage the strengths of multiple chains, providing distinctive functionalities to users. Prime Protocol, Sommelier, and Squid are notable early instances of interchain-native applications.
Take, for example, the early days of mobile app development, where choosing between iOS and Android was a dilemma. Nowadays, developers can design for both platforms using tools like Flutter, enabling the integration of unique features and applications.
This universal development landscape presents significant benefits over traditional internet application methodologies. One of the key benefits is composability. The open-source attribute of Web3 empowers developers to create “super apps” within the decentralized web. Composability in this context implies that developers construct as if using Lego bricks.
This principle, common in open-source software, extends to Web3, where developers combine software functions and composable network effects. Thus, Web3 developers link the collective value contributed to various networks by numerous users, heralding the emergence of the “super app” as a formidable capability of Web3 developers.
In the spirit of interchain approaches to interoperability between blockchain networks, the Mattr One Protocol by Embr Labs offers a new angle to the universal development environment. Mattr One is a Unified Interchain Liquidity Layer that uses USDC to facilitate value exchange across blockchain networks in real-time for payments use cases.
The modular nature of this technology stack provides the framework for blockchains (EVM and non-EVM) to interact with each other within dApps in a way that previously wasn’t possible. The Embr SmartSwap API, built on top of the Mattr One, allows developers to quickly tap into the benefits of our protocol’s unified interchain liquidity layer to power seamless interchain payments in real-time, as well as flows of funds into and out of DeFi. By offering a streamlined approach, this technology enables developers to focus on innovation, rather than on navigating the intricacies of interchain payments in their applications.
Embr Labs’ interchain approach stands in stark contrast to the current, more common focus on cross-chain applications and multichain methodologies, which tend to dominate interoperability protocols and technology. To read more about the Mattr One Protocol and the Embr SmartSwap API, read this article here.
The rapid evolution of blockchain technology, particularly in the realms of interoperability, has ushered in a new era of decentralized finance and application development. Understanding the nuances of terms like cross-chain, multichain, and interchain is vital for grasping the future trajectory of blockchain technology. While each of these concepts offers unique benefits and challenges, it’s the advent of interchain solutions, such as Embr Labs’ Mattr One Protocol, that promises a transformative leap forward in Web3 payments.
The Mattr One Protocol embodies the essence of interchain principles, standing as a testament to the innovative spirit driving the blockchain community. By enabling seamless, real-time value exchange across diverse blockchain networks, it is protocols like the ones mentioned here in this article that pave the way toward a more inclusive, efficient, and secure decentralized ecosystem.
As we look to the future, it’s clear that the principles of interoperability and the pioneering efforts of companies like Embr Labs will play a critical role in shaping the landscape of decentralized finance and beyond. By embracing these advancements, we can anticipate a more robust, versatile, and user-friendly blockchain ecosystem, driving innovation and inclusivity in the digital age.
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Governed by a global community, Mattr One represents a paradigm shift for Web3 payments.
Together, we can harness the power of decentralized finance to forge a more open and accessible financial system for all.
