- Cross-chain transactions and DeFi will be redefined by Near’s Chain Signatures.
According to a statement released by NEAR Protocol on August 8 and shared with CryptoSlate, the technology known as Chain Signatures enables smart contracts to sign transactions across any blockchain without the need for cross-chain bridges.
NEAR account holders can communicate with almost any blockchain thanks to Chain Signatures, including XRP, Cosmos, Dogecoin, Ethereum (and any EVM chain), Bitcoin, and Polkadot. By the end of the year, the blockchain network intends to include support for Solana, TON, and additional platforms.
The feature also allows for the production of Omnichain tokens, which are tokens that may be issued on various chains, and bridgeless Omnichain DeFi.
Link Signatures
The technology uses a novel protocol for threshold signatures. Users no longer require distinct accounts and wallets or numerous cross-chain bridges when using NEAR’s MPC nodes to sign transactions on their behalf. Users of NEAR will no longer have to keep track of many native tokens in order to pay for gas.
It also expands asset liquidity and utility across blockchains and improves the DeFi experience. Moreover, it will make DeFi operations possible on blockchains like Bitcoin, which were not originally intended to accommodate smart contracts.
Proximity Labs CEO Kendall Cole, who was instrumental in the development of Chain Signatures, emphasized the technology’s potential to help with the disjointed Web3 ecosystem. Chain Signatures, he continued, would be essential for resolving interoperability problems and building a single layer for cryptocurrency users.
Chain Signatures, as stressed by Illia Polosukhin, co-founder of NEAR Protocol, will serve as a common DeFi layer for all blockchains. According to Polosukhin, this breakthrough will open up new possibilities for Web3 financial applications, which will help both experienced and novice cryptocurrency users.
Over 6 million users have already adopted Chain Signatures across 15 applications, demonstrating the technology’s growing popularity.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
