New Protocol to Enable Transfers between Bitcoin and Ethereum Blockchains

A new protocol is allowing users to complete cross-chain transactions - meaning value can be transferred between different blockchains such as Bitcoin and Ethereum.

It has been developed by iBitcome and DEx.top, and the first federated blockchain to be built using this protocol is launching on Wednesday, Oct. 24.

According to iBitcome, trading between Bitcoin and Ethereum is going to be supported through the creation of a new token known as WBCH. The value of this cryptocurrency is pegged to the price of 1 Bitcoin Cash.

It is hoped that support for other public blockchains is going to follow in the not-too-distant future.

Emphasizing its open source nature, iBitcome says anyone is free to build their own gateway using the OFGP. Over time, it is hoped that other federations like Mallow will start to be developed - creating healthy competition in the marketplace, giving crypto enthusiasts choice and minimizing the importance of centralization.

iBitcome has already launched a crypto wallet, which is available to download on iOS and Android, and the company says it is "Committed to providing secure and convenient payment services." The startup says its multi-crypto wallet supports the likes of Tether along with Bitcoin, Bitcoin Cash, and Ethereum - adding that users benefit from an "AES-128-CTR encryption algorithm" and a decentralized infrastructure where they do not have to store their private key.

The company hopes that Mallow's launch is going to enable existing iBitcome users to complete transfers of assets more efficiently between main chains and side chains.

iBitcome says that tackling the issue of scalability and interaction between public chains is one of its main priorities, as well as striving to maintain decentralization for its user base.

According to iBitcome, its collaboration with the DEx.top, a decentralized exchange, provides "Security and transparency" because transactions are settled on the blockchain.

As its gateway protocol is introduced to the public, iBitcome hopes to establish connections between public blockchains which may have suffered from isolation otherwise.