MicroChains (Previously CBTC): Highly Secure Cross-Chain Experiences
The world of cryptocurrency is constantly evolving; therefore, it is necessary to update me. Recently, I heard about MicroChains (Previously CBTC). As I explored it further through, I feel surprised to see its traits. Let me share with my fellow crypto lovers.
Cross-chain is a protocol that resolves the communication, transfer, and exchange of data & assets, as well as the functional states on two or more different chains. A cross-chain bridge is a chain-to-chain bridge tool that allows the transfer of tokens and assets from one chain to another. Two chains can have different protocols, rules, and governance models, and the bridge provides a way to communicate and be compatible with each other to securely interoperate on both sides.
As we have seen lots of cyber-attacks in the crypto space, therefore, no matter what kind of attack method the cross-chain bridge is subject to, there are mainly two consequences: one is that the fund pool of the source chain is emptied; the other is that the assets of the target chain are over-issued, causing the assets of the source chain insufficient to be fully redeemed.
WBTC applying the external single-node verification mode ranks №1 in TVL among all cross-chain projects. More importantly, WBTC doesn’t have any records of security incidents. The reason is that its source chain assets are in custody by BitGo, a professional licensed digital currency custodian in the United States. Most projects cannot safely store complex and diverse digital assets. History tells us the truth that it is far safer for a custodian to keep cross-chain assets than the project’s self-managed fund pool (artificial risk) and contract lock-up fund pool (address attacked risk).
MicroChains has strategically cooperated with Huobi Trust (…backed by the 8-year accumulation of blockchain technology of Huobi and covered by insurance) holds a Hong Kong TCSP license and Cobo Custody, and created the cross-chain bridge solution of POT+VOMEN (Proof of Trust + Verification of Multiple & Enhanced Nodes).
Securities Features of MicroChains
VOMEN Network (Verification of Multiple & Enhanced Nodes Network)
Mint Verification: MicroChains verifies minting through an internal multinode risk control module and performs strict posting verification of source-chain assets, thus ensuring sufficient assets collateral.
Custody of Lock-up Assets: Lock-up assets are kept by top third-party custodian service providers.
Multiple Audits of Withdrawals: In addition to the multiple audits of the monitoring and warning mechanism, some custodians completed KYC acting as third-party enhanced validation nodes.
Prevention of Over-issuance: There is a mechanism for mint and withdrawal verification
MULTI-SIGNATURE & HSM: In combination with multi-signature and custodian security technology, offering multi-level protection.
STRICT RISK CONTROL: A mature team with abundant experience in cross-chain and finance to ensure product safety.
PROOF OF TRUST: Work with a reliable custodian in the best insurance coverage to assure asset security.
CREDIBLE CUSTODIANS: Credible custodians including Cobo & Huobi Trust conduct asset custody and supervise the implementation of 1:1 token anchoring, preventing over-issuance.
ASSET CERTIFICATE: Open and provable asset certificates. Full attestation report issued by credible third-party audit institutions.
With the above security solutions, MicroChains will be able to access 30+ public chains every year and provide secure cross-chain services for more than 100+ cryptocurrencies.
MicroChains Golden Loop:
Cross-chain Solutions for Major Cryptocurrencies of Mainstream Public Chains
CrossChain incentivizes users to provide liquidity on both ends of the mainstream public chains. For example, in the case of USDT, users who provide liquidity on both sides (Ethereum and Polygon) will be incentivized with MicroChains project tokens.
For Emerging Chains and Tokens
MicroChains secures 1:1 cross-chain assets by locking assets of the source chain in a compliant custodian and then minting wrapped tokens in the target chain. At the same time, cross-chains between different chains are derived, which means assets can be burned in the source chain and new assets can then be minted in the target chain.
Some of the features of MicroChain are as follows:
· Seamlessly Cross-chain between Any Chains
· Zero Slippage, 1:1 Equivalent Transaction
· Much Lower Cross-chain Fee
· Cross-chain in Minutes
· Freely to Use. No Upper Limit
Metamask (For EVM Compatible Chains), Nami (For Cardano)
MicroChains will launch the KYC validator program in Q4 2022 and make a transition from multi-signature to the expansion of validators by using MPC technology. KYC-passed validators are eligible to earn token rewards, and the incentive scheme will also be launched in Q4.
In The End
The cross-chain experience on MicroChains will be the same as the Web 3.0 experience. Users do not need to register a Huobi Trust account, but only need to Connect Wallet through the wallet plug-in of each chain on the MicroChains page to directly cross-chain assets.