OpenMarket, a decentralized marketplace for non-fungible token (NFT) trading over inter-blockchain communication protocol (IBC) in the Cosmos ecosystem and XAR network, a Cosmos-based IBC-supporting platform for collateralized stablecoins, announced collaboration to make NFTs on XAR and Fantom tradeable over IBC.
XAR features Collateralized Stable Debt Tokens (CSDTs), a non-fungible asset that has a non-insignificant value, and its ownership can be traded just like a crypto kitty or a domain name. More than that, if liquidation for a CSDT happens, there is an auction to sell it off to the highest bidder.
Cosmos has a protocol to build such infrastructure: Inter-Blockchain Communication protocol, which connects individual blockchains in the network. IBC opens up additional opportunities for exchanging fungible and non-fungible token transfers. Trading can take place not only on one chain but also between any Cosmos network blockchains. This allows OpenMarket to create a market for all participants of the system to trade NFTs.
The Cosmos network is a system of independent blockchains capable of interacting with each other. The development of new projects for it is facilitated by the Cosmos SDK framework, which provides all the necessary elements for building both general-purpose and application-specific blockchains. The Cosmos ecosystem consists of a variety of interoperable application blockchains and smart contract platforms.
The usual value flow for OpenMarket is: NFTs and currencies, originated on application-specific blockchains or smart contract platforms are transferred via IBC protocol to the OpenMarket Blockchain, where all trading is done. After a trade happens tokens are transferred via IBC protocol to the target blockchain, not necessarily the one from which they originally came.
OpenMarket is a Cosmos zone that is made to accept a non-fungible asset over IBC and put it on sale or on auction. XAR Network and OpenMarket will collaborate to connect XAR’s non-fungible CSDTs to OpenMarket’s digital asset marketplace. The key advantage of over traditional finance so far is permissionless composability, and XAR will work with OpenMarket to bring that composability to the Cosmos ecosystem.
“Non-Fungible Tokens (NFTs) are an important part of the modern blockchain ecosystem. NFTs allows users to represent unique physical or digital assets, opening up the possibility of securely owning, transferring and selling these objects. NFTs can reflect ownership and copyright, gaming assemblies and licenses, financial obligations, as well as any other entity that can be represented as a set of unique data fields. Any non-fungible token can be sold or donated in the market, but this market needs a reliable and convenient infrastructure.”
– The OpenMarket Team