3 Reasons why GoChain’s GOST Protocol can be Beneficial to Stablecoins
Stablecoins have cemented their place in the cryptocurrency industry. Despite some controversy surrounding some of these currencies, it seems there is still a growing demand for interoperable solutions. GoChain may have an interesting solution in this regard, as its GOST protocol proposal can introduce some powerful changes and improvements.
Why GOST Matters
Not to be confused with the Ghost Protocol movie, GOST Protocol is an entirely different creature. For now, it is merely a proposal which can introduce some interesting dynamic changes for GoChain. The cross-chain transaction concept, a sit is currently known as, could open the door for issuing stablecoins on GoChain and ensure intra-chain operability as a result.
It is to be believed this concept would be capable of keeping transactions decentralized, as all network nodes will need to participate to make transactions occur. In an ideal scenario, users will be able to transfer tokens to and from GoChain at any given time. For now, the main focus lies with being interoperable with Ethereum, albeit that situation may come to change moving forward.
The Benefits it can Provide
As is always the case in the cryptocurrency industry, there are transaction fees to take into account. Stablecoins issued on Ethereum face a rather high average transaction fee, which is far from ideal. Especially since these currencies are designed to be moved around freely and at a rather quick pace. GoChain should be able to reduce the fees and even support higher transaction volumes along the way.
Additionally, the plan is to speed up overall stablecoin transactions in the process. Ethereum has a short confirmation time, but it can still be improved upon. Combined with the network congestion which seems to occur on a regular basis, GoChain could very well serve as a plausible alternative. In fact, it seems confirmation times of 1 second should be possible, depending on the network’s circumstances.
Cross-Chain Consensus Becomes a Possibility
One of the more intriguing aspects of this proposal is to potentially introduce a cross-chain consensus mechanism. In its current form, every blockchain has its own rules, and interoperability is therefore very problematic to achieve. With the GOST protocol, all of that is designed to change. GoChain’s node network can come to consensus on its native chain and another chain’s data to achieve this goal.
For now, all of this remains a proposal which might not be put into working technology anytime soon. It is a pretty interesting idea to explore, and if done successfully, it can yield a very positive change for the cryptocurrency industry as a whole. Scalability has always been a pretty big problem in this industry, yet this approach can effectively allow networks to work together in a meaningful manner.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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