Cross-chain technology is in full swing, how to invest in good cross-chain projects?
Up to now, the advantages and disadvantages of blockchain technology have begun to take shape. As the technical support of Web3.0, the blockchain has a problem that needs to be solved urgently-closure.
The existing blockchains have gradually formed “islands” with numerous application interactions on the chain; once they are separated and want to cross-chain, there is no way to start. Especially now that the assets in the blockchain field are beyond imagination, but because they are locked in every chain, the asset liquidity is insufficient. In the simplest example, you cannot use BTC to directly buy CryptoKitties.
Therefore, there are cross-chain projects.
· There are many cross-chain projects developed now, such as Polkadot and Cosmos, which can be summarized as follows:
· Data cross-chain
· Asset-level cross-chain
· Operational cross-chain
By 2020, the Polkadot project will be launched, and cross-chain projects will begin to spring up like mushrooms. Some projects have ambitious visions, but they are difficult to achieve; some projects are cutting leeks under the banner; some projects just label themselves as cross-chain…
For example, some projects, under the banner of asset cross-chain, are actually an exchange. Because some people who don’t understand cross-chain will think that the so-called asset cross-chain is a simple operation like “I transfer 1 BTC to the Internet, and then transfer N ETH to me online”. But in fact, asset cross-chain is much more complicated than this.
So how to identify the real cross-chain in this group of “muddy waters” and screen out good projects? This is really difficult for people who are just entering the circle or for those who do not study deeply. But with a good tool, it can be easily solved.
CEP, the cryptocurrency investment protocol, may be a good choice.
First of all, there is no need for users to select cross-chain projects by themselves. CEP itself has already done the preliminary screening for you. What users need to do is to select their favorite cross-chain projects from the projects and information provided by CEP. This not only reduces the user’s workload, but also reduces the risk of user investment.
Secondly, CEP’s on-chain operations are executed by smart contracts, and everything can be queried on the chain, avoiding centralized black box operations and spamming. Trustlessness, openness, and transparency are the essential features of the blockchain, and are also important features that can guarantee user assets.
Furthermore, CEP also integrates cross-chain technology, which allows users to realize the interconnection of a variety of different public chains and different ecosystems. In other words, as long as users invest in a certain cross-chain project, they can configure the encrypted assets of other cross-chain projects at the same time, so that they can freely carry out the investment conversion of cross-chain projects according to their needs.
Finally, CEP can be traded from market makers through redemption & issuance, or a small amount of purchase and sale can be achieved through the secondary market. Diverse choices are equivalent to adding a layer of flexible insurance for investment.