Blockchain technology has more potential than even the most versed blockchain enthusiasts can even fathom. The latest NFT surge serves as a timely reminder of that fact. Some industries, such as real estate, have made giant strides in both the physical and virtual worlds, leveraging the potential of blockchain technology. For example, Michael Arrington, founder of tech news site TechCrunch, bought an apartment in Ukraine in 2017 without ever visiting the country. The entire transaction took place on the Ethereum blockchain via smart contracts and was fully paid for using cryptocurrency.
The blockchain industry has more to offer today than it did back in 2017. In fact, it is an industry that has more pull than almost any other in the world right now. A great indicator is the exodus of talent from other tech industries into the cryptocurrency space.
Now, there is Horizon Protocol.
Horizon Protocol is a DeFi platform that aims to create tradable digital versions of real-life assets (synthetic assets) on the blockchain. Horizon is deployed on the Binance Smart Chain (BSC) because of its native properties. However, it also offers interoperability, the ability to interact with different blockchains. Horizon does all this to deliver on its promise – introducing real-world DeFi derivative products to the DeFi ecosystem.
Why is Horizon Protocol on BSC?
BSC is an upgrade to the original Binance blockchain. It runs on a Proof of Staked Authority (PoSA) consensus algorithm. BEP20 BNB is the native token of the BSC and is used to pay for transaction fees on the blockchain. It has the same format as Ethereum’s ERC20 token standard.
The key features of BSC are compatibility with Ethereum blockchain, high-speed transactions, and lower transaction fees. BSC’s compatibility with Ethereum made it an obvious option for developers to deploy their smart contracts and build out their apps. BSC does not suffer from the scalability problems that plague Ethereum, causing bottle-necks and astronomically high transaction fees.
dApps deployed on the Ethereum blockchain can easily be configured to run on BSC. Hence, BSC users can get the best of both worlds.
These features make BSC perfect for Horizon Protocol and everything it hopes to achieve.
Cross Chain Bridges
For blockchains and blockchain products to gain the level of adoption they need to become part of daily life, they need to be more flexible and accessible. They need to communicate fluidly to interact and complete transactions without the technical barriers posed by different blockchains.
This problem formed part of the decision to launch Horizon Protocol on the Binance Smart Chain (BSC). BSC seeks to address Ethereum’s present DeFi scalability issues. Horizon Protocol has lower transaction fees, faster speeds, Horizon Protocol offers cross-chain operability to its users in a user-friendly model that employs blockchain bridges such as Tendermint, PolyNetwork, Polkadot, and Cosmos. These tools facilitate interoperability on several blockchains such as Binance Smart Chain, NEO Blockchain, Ethereum Blockchain, etc.
The nature of synthetic assets also means that Horizon Protocol can provide a single-stop platform that gives users access to synthetic crypto assets and a range of real-world financial assets on the BSC with bridges to and from other blockchains as needed.
Synthetic Assets on Horizon Protocol
The primary purpose of Horizon Protocol is to create real-life assets on the blockchain, thereby absorbing the derivative market into a more efficient system – the blockchain. These commodities are called synthetic assets (zAssets) on HP.
zAssets have a value that is a reflection of their real-life equivalent on Horizon Exchange. Horizon protocol uses PhoenixOracle, Chainlink, and Band to link real-world financial and crypto assets with Horizon Exchange.
Horizon Protocol’s deployment on BSC allows the team to be ambitious. With scalability, speed, and low transaction fees out of the way, the development team can focus on the utility that HP aims to provide.
Like the house sold on the blockchain using smart contracts and cryptocurrency, traditional finance also stands to benefit from blockchain technology. DeFi is for everyone, and for that to happen, everyone should be able to access it. That is why HP delivers accessibility on various blockchains too.
For once, no one has to move over. HP is here to make finance better for everyone.