Blockchain technology has grown in leaps and bounds in the eight years since Bitcoin came onto the scene. In fact, public blockchains command a combined market cap of over a 100 billion dollars strong, and that’s without counting private blockchain numbers.
The blockchain industry has proven such a force to be reckoned with that the World Economic Forum believes 10 percent of the global GDP will in fewer than ten years, stored on the blockchain. By today’s global GDP we’re looking at almost $8 trillion. There’s a catch though, If the blockchain community, don’t figure out a way to connect blockchains, these almost 8 trillion dollars will be so dispersed that they’ll be of little value. The Cryptographically secure Off-chain Multi-asset Instant Transaction network, or COMIT for short, seems to promise to do for blockchains what the invention of the TCP/IP protocol did for the internet.
Before the TCP/IP protocol, the internet was a dispersed in many local networks, intranets so to speak. Intranets provided localised efficiency over the traditional point-to-point communication like FAX, snail mail, and phone calls. It wasn’t until 1973 that people realised they could inter connect existing individual networks through a unifying Internetwork protocol to communicate with each other, thereby extending reach by compatibility even more.
By simply lowering the requirements for each network to communicate with the other, the technology’s true potential was unlocked, the internet was born. Because of that, we have YouTube, Twitter, Instagram and instant messaging. The COMIT protocol proposes to connect existing blockchains, and make transacting as quick as sending a Whatsapp text.
Instead of setting up a larger blockchain that other blockchains will simply have to trust, TenX’s COMIT uses a simple open protocol to create the “interchain” network. Much like the Internet, a stable and reliable backbone is necessary, because just like on the Internet, different modalities will be interconnected, which large blockchains can provide. The initial Internet could never imagine mobile app messaging services, but these have been implemented seamlessly.
COMIT works in much the same way, as any new Blockchain can be connected to an existing one through the use of the COMIT Routing Protocol (CRP) making cross chain payments possible. COMIT introduces the concept of Liquidity Providers (LP), which can we can understand d as hubs or nodes in the COMIT network that create payment channels to users, other LPs, and businesses. They are a core part of COMIT, just as servers, routers, and ISPs are to the Internet.
Liquidity providers allow users to transfer assets instantly from person A to person B. If person B then opens another payment channel to person C, person A can also transfer assets to person C via B instantly, as long as person B forks out enough liquidity. there can theoretically be an infinite chain of participants between person A and C, as long as they all provide enough liquidity. Any such transaction is immediate without person A knowing which route the assets took to end up at person C. “A” can trust this system blindly as the routing protocol ensures its correctness, along with cryptographically secured payment channels which ensure flawless functionality.
COMIT, offers advantages for users (low costs, instant transaction settlement, access to multi assets, full control), Liquidity Providers, (Teamwork, Recurring Revenue Stream,low operating costs), and Businesses (Global Reach, New Markets), and could very well be the next logical step towards bringing blockchain technology into the mainstream.