Unlocking Potential: The Impact of Cross Chain Signature on NEAR and Beyond
The current landscape of blockchain technology is marked by fundamental limitations, akin to a scenario where a Gmail user cannot send messages to an Outlook email address. Similarly, in the Web3 domain, fragmented addresses create significant challenges, impeding seamless interoperability between different networks.
That’s where the Near Foundation came in and decided to develop their concept of “Chain Abstraction”. The capability of a chain of being agnostic in its functioning, while maintaining a proprietary architecture.
Image made with Midjourney
The introduction of the “Cross Chain Signature” is a huge step forward for the Near Ecosystem and the Blockchain World in general.
To better understand this concept and its potential, let’s dive briefly into the technology.
NEAR’S Chain Signature - Deep Dive
At the core of NEAR’s chain abstraction efforts is chain signatures—a new technology that allows NEAR accounts to sign transactions for any blockchain. Chain signatures enable threshold signatures for any blockchain, managed by NEAR accounts and smart contracts.
Utilizing this technology, a NEAR account—which can also function as a smart contract—can request NEAR validators or MPC nodes to sign any payload, such as a transaction for a different blockchain, and receive the signed payload to send to the destination chain.
This capability is facilitated by an account-based decentralized Multi-Party Computation (MPC) network. This network allows NEAR accounts to control multiple addresses across various chains, ensuring that only users can request transaction signatures.
Image Source - NEAR foundation Miro
This scenario can drastically enhance the interaction capabilities between chains, thereby improving the asset management capabilities of institutions and their flexibility in asset movement.
Cross-chain signatures could enable NEAR investors to stake and move assets that belong to another chain, which would normally require a different address or wallet. This can be done directly from the NEAR blockchain, avoiding the hassle of accessing multiple blockchains.
Source: https://docs.near.org/build/chain-abstraction/chain-signatures
Colossus and the Future of Cross-Chain Signatures for Institutional Investors
Cross-chain signatures could improve the quality of life for all institutional investors, facilitating the custody and staking experience. They could become the missing puzzle piece in the big picture of accessibility and asset management capabilities for venture capital, foundations, and asset managers who rely on NEAR for their Blockchain activities and investment purposes.
That is why Colossus is leading in technology and actively developing solutions to implement NEAR cross-chain functionality, enabling staking and custody transactions on multiple chains directly from clients' NEAR accounts.
Pushing the boundaries of Web 3.0, Colossus is actively becoming a key player for institutional participants in the ecosystem by being a safe custodian and a reliable validator, while continually striving to innovate and bring its own twist to new and existing technologies.
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