OpenMarket, a decentralized marketplace for non-fungible tokens (NFT) trading over inter-blockchain communication protocol (IBC) in Cosmos ecosystem and XAR network, Cosmos-based IBC-supporting DeFi platform for collateralized stablecoins, announce collaboration to make non-fungible assets on XAR and Fantom tradeable over IBC. XAR has CSDTs – Collateralized Stable Debt Tokens. CSDT is a non-fungible asset that has a non-insignificant value, and its ownership can be traded just like a cryptokitty or a domain name is. More than that, if liquidation for a CSDT happens, there should be an auction to sell it off to the highest bidder.
The Cosmos Network is a decentralized network of independent blockchains capable of interacting with each other. The development of new projects for it is facilitated by the Cosmos SDK framework, which provides all the necessary elements for building both general-purpose and application-specific blockchains. Cosmos Ecosystem consists of a variety of application blockchains and smart contract platforms, made interoperable using Cosmos technologies. Non-Fungible Tokens (NFT) is an important part of the modern blockchain ecosystem. NFT allows us to represent unique physical or digital assets, opening up the possibility of securely owning, transferring and selling these objects. NFT can reflect ownership and copyright, gaming assemblies and licenses, financial obligations, as well as any other entity that can be represented as a set of unique data fields. Any non-fungible token can be sold or donated, so around NFTs formed its own market, but this market needs a reliable and convenient infrastructure.
Cosmos has a protocol to build such infrastructure: Inter-Blockchain Communication protocol, which connects individual blockchains in the network. IBC opens up additional opportunities for exchanging fungible and non-fungible token transfers. The trading can take place not only within one chain but also between any Cosmos Network blockchains. This allows OpenMarket to create a convenient market for all participants of the system to trade non-fungible assets.
The usual value flow for OpenMarket is this: NFTs and currencies, originated on application-specific blockchains or smart contract platforms are transferred via IBC protocol to OpenMarket Blockchain, where all trading is done. After a trade happens tokens are transferred via IBC protocol to the target blockchain, not necessarily the one from which they originally came.
OpenMarket is a Cosmos zone that is made to accept a non-fungible asset over IBC and put it on sale or on auction. XAR Network and OpenMarket will collaborate to connect XAR’s non-fungible CSDTs to OpenMarket’s digital asset marketplace. The key advantage of DeFi over traditional finance so far is permissionless composability, and XAR will work with OpenMarket to bring that composability to the Cosmos ecosystem.
XAR is an innovation sandbox for cutting-edge DeFi (Decentralized Finance) product offerings. Built in collaboration with the Fantom Foundation on Fantom’s consensus protocols (Lachesis and TxFlow), the network delivers fast responsiveness and high transactional throughput. This base layer of the stack is all built on XAR Network’s bespoke chain to ensure financial institutions have the functionality to provide compliant issuance and wallet controls. As a result, XAR achieves unparalleled processing efficient performance (offering full transacting finality in less than 1 second), data bloat is reduced, security in a public ledger is increased, and superior smart contracting features can be implemented.
Key to any blockchain platform or financial product (whether it facilitates transacting or investment) is ensuring token issuers can comply with local and global regulatory requirements, and give users confidence that their funds or assets are secured on-chain and within the scope of a local central bank or regulator’s provisions.
Whilst exceptionally challenging, balancing the need for issuer control against a user’s incontestable ownership of tokens has been the central priority in XAR Network’s Blockchain and Product design.
The purpose of Xar (as a public permissionless chain) is to provide a safe and secure decentralised finance platform where global entities are free to engage in immutable transactions and trust-less smart contracts that can automatically compel performance without the need to be beholden to a single reserve currency.
XAR Network Enterprise focuses on custom chain solutions for Central and Commercial Banks that want to develop tokenised deposit ecosystems for the next generation of global finance.
By partnering with OpenMarket, XAR believes that applications for its innovative CSDT model will lead to new trading solutions. For example, virtual world and online game developers will be able to easily create verifiable and transparent currencies and marketplaces to develop virtual economies that give users around the world the freedom to fund and interact without discriminating between the use of fiat or crypto of their choosing.
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– Original article: Announcing technical collaboration of OpenMarket and XAR Network
– Photo by Ake on Rawpixel