Accumulate Protocol: Interoperability at the Forefront

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The blockchain industry is still largely self-contained and focused on approaching problem solving through novel ways that mainly revolve around decentralization and transparency. Although these issues are extremely important and decentralized finance (DeFi) proves that there are new ways of approaching them that do not have to rely on slow and obsolete practices, traditional finance is still undoubtedly the biggest approach to finance, and both TradFi and DeFi can only benefit from a mutual understanding. 

However, this is in most cases much easier said than done. Thanks to its significant differences compared to traditional finance, decentralized finance is still largely struggling to establish a trustless, yet transparent and secure link to financial institutions and services of the traditional type. Solving this problem would help bridge the gap that currently separates these two approaches to finance and bring innovations to both of them. This is where Accumulate comes in. 

In its litepaper, Accumulate says it is aiming to become “the bridge to the digital economy.” Its purpose is to enable both individuals and financial institutions to do everything that DeFi already does without depending on external validators, by focusing on a framework centering around identity instead of addresses. As they point out, addresses are notorious for their complexity; very few users carefully check the string for inconsistencies before sending funds, relying on only verifying the first and last few characters, which leaves them open and vulnerable to man in the middle attacks.  

Accumulate replaces them with so-called Accumulate