Global Blockchain has announced that it is launching a service layer technology called Laser. Laser operates on top of any existing blockchain network and optimizes its functions – which includes the ability to operate with other blockchains. With these features, Laser seeks to play a central role in the growth of all blockchains by allowing interoperability. The Laser Network is built on a hard-fork of the Ethereum blockchain, the Laser blockchain.
As cryptocurrency growth has occurred, limitations for individual cryptocurrencies have become known with respect to how much market share each currency can possibly acquire. In spite of the fact that cryptocurrencies such as bitcoin, ethereum and litecoin are each major players, no single one of them can become the sole cryptocurrency.
The United Nations officially recognizes 180 currencies worldwide and outside of reserve currencies none of these compete with one another for market share, as they each serve their own purpose in their respective jurisdictions. These currencies can easily be transacted across borders and banking systems through systems such as SWIFT, making most currencies tradeable and fungible on a global scale.
No such “SWIFT” solution has existed for cryptocurrencies until now. Laser has been developed to offer this function of interoperability between blockchain by standardizing properties such as wallet numbers, it will be possible for users of one blockchain to make transactions with users of another blockchain without the use of a third-party exchange. This effectively does away with the borders of the blockchain ecosystem and opens up new possibilities of transactions.
Shidan Gouran, President of BLOC, commented: “Having many different currencies is actually very good for the crypto world. Each one has its own attributes that are just as unique as each of the distinct user bases out there. Now that they can be transacted across blockchains, transactions between these currencies can occur as though you were trading US dollars for Euros.”
Laser will offer two other key features in its initial version. The first feature is the use of an overlay protocol that provides ‘pseudo confirmation’ of transactions, enabling any two cryptocurrencies to be transacted in a matter of seconds. This is a significant improvement over the processing times of other blockchains, which can take minutes, or even hours to be finalized.
The second feature is the optional ‘joining’ service to make transactions anonymous in any cryptocurrency. This is accomplished by bundling multiple transactions together – where coins are ‘shuffled’ and predetermined amounts are disbursed to predetermined recipients. This will obfuscate the ownership history of a given unit of a cryptocurrency, preventing it from being tracked through the blockchain.
On a broader scale, the full nodes that will comprise the Laser blockchain will be incentivized through transaction fees which full nodes on other blockchains do not generally benefit from. This will result in the improvement of the performance of the underlying blockchain – as without it many blockchains suffer from not having enough full nodes and thus, not enough computing power. More importantly, these nodes will be required to provide collateral in order to operate – which disincentivises dishonest behaviour from rogue operators, giving integrity to the blockchain.
Chairman of BLOC, Steve Nerayoff remarked: “The availability of computing resources is a key concern when it comes to running a stable blockchain. With Laser, we will be addressing this concern with a transparent and lucrative compensation structure for full node operators – which will boost the performance of existing blockchains and propel the Laser service layer that will bring them all together.”
Finally, Laser will introduce a more efficient derivative of the Casper protocol – even before. Casper is based on PoS as opposed to PoW. This has the primary benefit of reducing the amount of energy required to operate a blockchain, reducing both fixed and variable costs, as well as ensuring that the blockchain remains sustainable.