Ethereum Quantum Protocols – The answer to digital asset transfers
Digital assets present a severe problem for users online, mainly because unlike buying a ticket from someone in person. There’s no direct transfer of that ownership, meaning while you may have purchased it, there’s no evidence to show that you are, in fact, the owner.
The conflict that exists between centralised and decentralised systems has been ongoing for quite some time. Organisations like Napster in 2002 and Limewire in 2010 have demonstrated some of the first decentralized, peer-to-peer lending platforms.
The questions it had previously answered still exist today for millions of users online:
- Live Ticket Events – For those selling tickets online for a music event, while they can regulate the first sale of tickets, secondary sales go entirely unregulated. In spite of attempts to curb these activities, secondary selling is a thriving area for ticketing if regulation were able to provide oversight.
- Airline Tickets – These are completely centralized, which provides security to their buyers but means that anyone looking to sell or trade their spot have no way to do so.
- Music Files – Whenever you buy a music track or album from a company like Apple. It comes embedded with something called a Digital Rights Management (DRM) to prevent unwanted transfers. This remains a problem as copyrighted, non-DRM holding music can still be shared with ease.
Ethereum Quantum Protocols – What Is It And How Does It Work?
Ethereum can weigh in on this conflict in a major way through combining its existing tokens – ERC-721 (Non-fungible tokens) and its ERC-20 (Fungible tokens), creating a system that is referred to as the ‘Quantum Protocol’.
To better understand what these protocols would involve, it’s important to understand what these separate ERC systems are.
This is a relatively untapped protocol that exists on the Ethereum Blockchain and is used by companies and individuals looking to create a system on the blockchain. Particularly a system that doesn’t fit fully into Ethereums existing ERC-20 protocol.
To put it simply, remember CryptoKitties? That’s one of the projects that actively uses ERC-721. This is because CryptoKitties needed to develop a range of assets that were completely custom to it as a company.
In order to effectively develop these, it needed a protocol that used non-fungible tokens. In contrast, ERC-20 does not carry this capability. ERC-721 means that those looking to develop something with unique assets can use this form of protocol in order to exchange anything such as airline and music festival tickets.
One of the problems that it has, however, is that high demand can slow down the entire system. Demonstrating that it has some limitations.
The only difference that ERC-20 has is that it doesn’t offer this level of flexibility for what you wanted to send. Much like a currency, it doesn’t have that flexibility.
So How Would A Quantum Protocol Work?
The ERC-721 offers users a way to obtain that proof of ownership that is distinctly lacking through other mediums. It also can provide organisations with a level of oversight not possible through other means.
The limitations of ERC-721 have to be addressed, however, and with a Quantum Protocols, it can do this.
- This combination of both ERC-20 and ERC-721 means that the finished product will be streamlined and lightweight compared to using the latter on its own. A separate meta-data layer can be created to regulate non-essential information. By doing this, a level of pressure is taken off the protocol and overall speed is increased.
- This Quantum Protocol means that ERC-721 tokens can be made immediately interchangeable with fungible ERC-20 tokens. This means that these tokens can be used both within the system and with tokens that are immediately able to be bought and sold.This means that users can create their own tokens, capable of being traded on coin exchanges like Binance. But this also provides the means of supporting any number of transactions on the blockchain.
- The Quantum Protocol can combine the whole system and use a trustless, consensus protocol to ensure the system, as a whole, remains decentralized. To make sure that the ERC-20 and 721 protocols remain intact, the meta-data layer would need to include regulation through the implementation of a consensus system. In order to make sure that new information doesn’t have any negative impact on the existing assets and processing time.