Bitmain developers propose Bitcoin Cash (BCH) Smart Contract -Wormhole Protocol
A Bitcoin Cash (BCH) Smart Contract called Wormhole Protocol has been proposed by Bitmain’s developers. The developers debuted their BCH tokenization proposal in Chinese WeChat groups today, according to an article on yours.org. The proposal answers the question, “How to issue a token on the Bitcoin Cash Blockchain?” In addition to this, Bitcoin Cash even got a boost in the form of a currency converter on Google.
This new currency converter will ensure that users and prospective investors can check the cryptocurrency’s value easily. Moreover, Google’s currency converter provides the crypto’s current price in the fiat currency of their choice. This development could ensure more widespread adoption of the cryptocurrency.
How to issue tokens on the Bitcoin Cash blockchain?
Several developers have come up with ideas to issue tokens on the BCH blockchain like Colored-Coins. Andrew Stone proposes that OP_GROUP be increased in the BUIP Enable representative tokens via OP_GROUP on Bitcoin Cash. BUIP or Bitcoin Unlimited Improvement Proposal Archive is a GitHub page. But, to realize the OP_GROUP solution, the consensus rules of BCH needs to be altered. Basically, it enables functions similar to that of Ethereum Network’s ERC20 token protocol, according to Cindy Daily’s article on Yours.
But the problem is that proposals which require consensus upgrades to enable token issuance will inevitably cause problems. This includes technical risks, harsh conflicts and huge controversy among the developers in the community. Moreover, such controversial proposals more often than not will fail. While it might help prevent implementation of “radical” initiatives ensuring the stability and security of the network protocol. Promoting innovation also becomes harder.
According to the developers, they have been exploring ways to implement smart contracts on BCH Blockchain without any consensus upgrades. They said,
“After tremendous research effort, we have paid attention to the OmniLayer protocol, a scheme to realize token issuance through the OP_RETURN opcode. It is the technical basis for daily distribution and circulation of USDT. The Omni Layer runs on top of Bitcoin blockchain. Since the Omni Layer protocol uses the MIT license (open source), we forked the Omni Layer protocol and implemented the tech feature on Bitcoin Cash Blockchain to achieve token issuance. We named this technical solution Wormhole protocol, and the original token in the protocol is named Wormhole Cash.”
How does the Wormhole Protocol help Bitcoin Cash Blockchain?
Wormhole Cash adds new features to the BCH Blockchain. This includes token issuance, transferring and burning into the BCH blockchain without any changes to the current consensus rules. The transaction’s metadata is written in OP_RETURN, one among Bitcoin Cash’s opcodes. Wormhole protocol-based tokens can be issued, transferred and burnt only through Bitcoin Cash transaction. Additionally, it can be completed by recognizing (reading) data stored in OP_RETURN. The Wormhole protocol will be implemented by integrating into Bitcoind, without any changes to the consensus rules of Bitcoin Cash.
Image via Yours
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