Gone are those days when blockchains were used as independent networks for a specific purpose. Now the technology is emerging, and therefore, the developers are focusing more on the interoperability feature of the technology, which in one word known as Blocknet.
Blocknet is a decentralized peer-to-peer network protocol that connects various blockchain networks to enable cryptocurrencies to widen their adaptability horizon. Whether it is by using the protocol as a 2nd layer to extend the blockchain network or using it as a cross-chain dApps, Blocknet enables developers to borrow features from other platforms and not just from the hosting blockchain platform.
Without a Blocknet, whenever a platform tries to set up multiple protocols on a grid, the blockchain network fails, thereby making it difficult for blockchain developers to integrate different features from different blockchain networks; Blocknet solves this. Blocknet works more like an internet connecting multiple computers and sharing data amongst each other. Blocknet creates a cross-platform node protocol to develop a unified cryptocurrency community that the industry prefers.
How does Blocknet work?
Blocknet focuses on becoming the “Internet of Blockchains” by allowing peer-to-peer communication between different cryptocurrency nodes, thereby giving the nodes of various cryptocurrencies the power to interact with each other. It allows developers to base on a particular blockchain network but allows them to access other blockchain networks’ functionalities.
For this, the developers are using three core components that will work together to provide three primary services for these interchain dApps (decentralized applications), of which XBridge forms the backbone of Blocknet.
XBridge is the first decentralized peer-to-peer protocol that connects nodes on different blockchain networks, thereby allowing them to communicate. XBridge, not only allows cross-chain atomic swaps but also enables developers to transfer inter-chain data to execute smart contracts across multiple chains.
Blocknet also has also its native token called the “BLOCK.” The BLOCK token is primarily used as a medium of exchange for every transfer service offered by Blocknet. The payment is directly received by the service providing node and paid directly by the node that requested the service.
There is also a micro-fee system initiated to encourage the users to own the BLOCK token. The BLOCK token owners receive dividends from time to time from these micro fees. However, the total amount of dividends earned by each BLOCK token holders depends largely on the number of tokens they hold.
Apart from the transfer services, there are other services as well that the Blocknet provides to the developers. Like for example, Blocknet users can use the XBridge protocol to build customized dApps (decentralized applications) to combine their favorite blockchain features in one single chain.
The cryptocurrency industry has been waiting for a long time to connect coins to various blockchain networks for such an interlink system. Blocknet arrived as a perfect solution that will encourage other industries to adopt blockchain technology.