As per an announcement, Compound yesterday launched its Compound Chain. As expected, months after the network changed from being a centralized player to a completely community-governed protocol, the blockchain was released.
The protocol claimed that three grossly restricting elements were faced by the current version of Compound on Ethereum: high gas costs, the failure to service assets on other chains, and the risks of hosting each supported asset.
A significant use case is that of consolidated or even state-backed supporting assets. According to the White Paper, this implies that the Compound will finance, spend and pass digital currencies belonging to central banks and investment banks in principle. The paper said: “[Compound is] proactively preparing for the rapid adoption & growth of digital assets on a variety of new blockchains, including Eth2 and central bank digital currency ledgers.”
CASH, a modern digital currency, is also launched by the new blockchain. This token can be used to pay for compound network transactions, while the protocol can be controlled by COMP.
Although a new framework for the development of both the blockchain and the wider crypto community is offered by the Compound Chain, some in crypto circles are dissatisfied with the way the protocol progresses.The concept that independent “appcoins” such as the Compound would accomplish some decentralization was “actually worse than honest straight-up centralization,” Eric Wall, CIO of Arcane Investments, said.