A new blockchain protocol funded by the Web 3.0 Foundation promises to reduce security requirements in DeFi and cross-chain applications.
Interlay received a grant from the foundation to build a bridge between Polkadot and Bitcoin (BTC). The last document resulting from this project “Promise: Use future profits to reduce guarantees “, propose a new protocol.
Alice and Bob have an ongoing relationship
The easiest way to explain how Promise works is an example. Suppose Alice hires Bob as a service provider for a number of tasks and there is a relationship in which Bob regularly offers Alice a service and every time she pays him 1 ether.
How Promise works. The source: promise white paper.
Usually Bob would have to get a 1.5 ether guarantee if he accepts payment and doesn’t do the job. With Promise, Alicia, instead of sending the ether directly to Bob, she would end it with Promise. Bob would receive regular payments from Promise once the proof of performance was provided. Since future payments serve as an additional bonus, Bob may be able to deposit a smaller amount of collateral. The key here is that the relationship must be continuous and not unique..
Music in our ears
Cointelegraph interviewed one of Promise’s creators, Dr. Dominik Harzwhich is currently in Japan due to the COVID 19 outbreak. In his opinion, Promise trades in collateral transactions that Spotify has implemented for the music industry.::
“And turn this short interaction into this sequential game or just as a classic subscription model. Imagine using Spotify. And instead of paying a monthly subscription, you pay for each song individually. Well, every single song could be super cheap. There is a mental overload. This mental transaction costs where you think, “Oh, do I really want to hear the next song? And it’s barely five cents. If you only have one subscription, everything is fine. ”
Since Promise is of no use for a one-time relationship, Dr. Resin that the potential beneficiaries could initially be exchanges and “wrapped” token issuers. As Cointelegraph has previously reported, the demand for such assets is growing and there are now significantly more bitcoins blocked in wBTC than the entire value of the Lightning network.