FUSION DCRM Yellow Paper Announcement: Definition, Background and the Impacts Explained
FUSION is pleased to announce the release of its DCRM Yellow Paper. To explain what a yellow paper is and why it’s important, it starts with the white paper.
Blockchain projects produce a white paper to describe the project, outline the problem, the project philosophy, team, deployment plan, and how the project’s token functions. Fundamentally, the white paper is a proposal. FUSION’s White Paper, published in 2018, was widely regarded as a gold-standard example of a robust, detailed, and complete body of work; especially in comparison to the majority of blockchain white papers available.
A yellow paper is a technical document that explains the technology that underpins a white paper. A white paper is critical for blockchain projects to produce a new token through the ICO process, a yellow paper is not. Only the most sophisticated and technically sound projects produce and publish a yellow paper to explain their technology in-depth.
The technical write-up in FUSION’s Yellow Paper focuses on the proprietary, breakthrough Distributed Control Rights Management Technology (shortened to the acronym DCRM).
DCRM is the backbone of the Fusion platform and perhaps the most significant of FUSION’s technical achievements. DCRM is the key cryptographic innovation that solves interoperability made possible by the FUSION blockchain.
DCRM was achieved by combining new and existing cryptographic technologies and theorems including zero-knowledge proofs, sharding, and homomorphic encryption. Interoperability paves the way for cross-chain smart contracts that will enable the seamless execution of complex financial agreements without the need for governance and third party intervention. DCRM will be one of the foundational innovations that unlocks a new inclusive financial system on the blockchain. This new system of being able to freely exchange financial assets online is commonly referred to as, “The Internet of Values”.
In explaining the impact of DCRM, it centers around interoperability. Right now, all financial platforms struggle to interact with each other smoothly, efficiently, transparently, and effectively. Interoperability is one of the most pressing and fundamental roadblocks facing cryptocurrency, blockchain, and traditional financial ecosystems. Solving it will change the entire global digital and traditional financial system.
FUSION founder DJ Qian explains, “With Fusion, all values across different ecosystems become interconnected. For businesses and cryptocurrencies interoperability may change the very fabric of their business models. Programmable smart contracts that run on the FUSION blockchain can realize existing financial services and transactions with increased efficiency, transparency and accessibility whilst paving the way for innovation.”
Today, traditional financial systems cope with interoperability by using third party intermediaries to facilitate transactions. An example of an intermediary found in global banking is SWIFT. In the blockchain world, interoperability is a major problem, too. For example, all ERC-20 tokens can interact with each other because they all run on the same platform, The Ethereum blockchain. However, ERC-20 tokens can’t interact freely with BTC because each coin or token is limited to their own ecosystem. Add to that, multiple token interaction using a single smart contract is currently impossible. To illustrate, if one wants to execute a trade with an unknown counterparty of 5 ETH + 10 BTC for a quantity of BNB using a single smart contract, the most common way is to transact is through an intermediary trading platform.
The impact of DCRM reaches beyond the blockchain world. Once traditional financial institutions complete digitizing their assets, for example: bonds, loans, OTC trading contracts, etc. those assets (also referred to as values) once mapped to the FUSION platform, can then interact freely with any other values. Ultimately, FUSION’s DCRM opens the world of financial transactions making them accessible for any company, institution, government or individual around the globe.
FUSION is offering an efficient, elegant, and accessible solution for connecting cryptocurrencies, traditional financial institutions’, and individuals’ digitized assets to freely transact openly, without governance, and expensive third party intermediaries.