ShapeShift Announced DAO Partnership with Coinbase Cloud

ShapeShift announced this Friday, March 18, through its Twitter account, its new DAO partnership with Coinbase Cloud which, in its opinion, will provide expertise in designing, building and developing ecosystems by launching FOXChain.

Image about ShapeShift Twitter post

“ShapeShift DAO is officially starting work on FOXChain with collaborative support from Coinbase Cloud. FOXChain will be a data availability network that will use the Tendermint consensus with the aim of hosting blockchain data in a decentralized manner. This partnership originated from a Coinbase Cloud proposal offering expertise in designing, building, and developing ecosystems by launching FOXChain. Successfully launching networks can be a difficult task and is made easier by collaborating with trusted partners, such as Coinbase Cloud“, he said through an article published on the Medium platform.

According to the company, with technological and regulatory advances accelerating the pace of institutional adoption of cryptocurrencies, the growing prevalence of proof-of-stake blockchains, which now drive a combined market capitalization of more than $200 billion in assets, presents a novel opportunity for both institutions and DAOs. to grow and expand value-added services to its clients such as FOXChain.

What is FoxChain?

The company assured that FOXChain will be a blockchain data availability network based on Cosmos SDK that will use the Tendermint consensus with the aim of fully decentralizing blockchain data. It is a blockchain specially designed to store metadata for each ShapeShift supported blockchain. Borrowing many established mechanisms from the THORChain architecture, some of the most significant benefits of FOXChain are the incentives offered to anyone who hosts blockchain data. The decentralization of blockchain data is vital to enable ShapeShift’s mission to be fully decentralized, meaning the ShapeShift UI will be fully supported via FOXChain as the back end.

“Although the FOX token was first launched on Ethereum, ShapeShift sees a future where FOX tokens can freely float across chains without having a “nativity” concept. For example, if you want to access Uniswap, you will move your FOX to the Ethereum mainnet, and if you want to access native ShapeShift staking, you will move your FOX to the FOXChain. There will be no cost for anyone to use the FOXChain network”, he added.

In his opinion, FOXChain will incentivize operators to run blockchain nodes and manage the Unchained abstraction layer. ShapeShift would no longer be the centralized host for your data; instead, it will allow anyone to host pieces of blockchain data and contribute to a decentralized system. Operators running blockchain nodes will list them on FOXChain for passive income, and users can find and connect to them through FOXChain. Additionally, any user will have the option to delegate their FOX tokens to validators running these blockchain nodes that they believe best serve the community and ecosystem. When it launches, FOXChain plans to have queries and transactions available to users, supporting over 25 protocols to seamlessly build and scale cross-chain applications. A branded Coinbase Cloud validator will be available to the community in addition to white-label validators that can be run independently to participate in the network.

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Benefits of FoxChain

The company explained that the most significant benefit of FOXChain is that it will allow data from indexed, decentralized and incentivized nodes. Nearly every interface connects to some form of centralized node data, meaning there is a strong global use case for FOXChain. The decentralization of data from the nodes that feed these different interfaces is crucial if we ever want a truly decentralized interface. The interface that users see when using ShapeShift will be completely decentralized, nobody can turn it off or regulate it because there is no centralized service that has the power to do so. The resiliency and independence of FOXChain is possibly the most significant benefit for the average user.

While the secondary benefit is that users can help protect and validate the network and support nodes by staking their FOX tokens through validators while earning FOX rewards. The network will be decentralized and will not depend on any particular node, which means that a centralized entity is not prevented from running a single or even multiple nodes. However, they can be replaced by anyone at any time and therefore FOXChain does not depend on any centralized entity.

What is Coinbase Cloud?

It is the software arm of Coinbase formed after Coinbase’s acquisition of Bison Trails in early 2021. As you would think of the relationship between AWS and Amazon, the same idea extends to Coinbase Cloud and Coinbase. Coinbase Cloud provides businesses and non-native entities with the tools to easily participate in proof-of-stake blockchains. They are an enterprise-grade infrastructure platform as a service provider to the leading custodians, exchanges, and providers in the space. They offer a redundant, multi-cloud, multi-region blockchain infrastructure for read/write and staking nodes across multiple protocols. Whether it’s a crypto application or a staking business as a service, developers can quickly get started with the APIs and infrastructure that power Coinbase.

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