The problem of scalability has been constantly present in the crypto industry ever since Bitcoin’s white paper has been published. Even before the coin itself launched, there were those who realized that scalability will be a problem in years to come, when more people start using it.
Six years later, when Ethereum launched, the solution was still escaping the developers. In the years that followed the launch of Ethereum, this issue became more than just a theoretical problem of the future. The crypto industry exploded, especially in 2016 and 2017, and scalability suddenly became an issue that needed to be resolved immediately. This resulted in the creation of new projects that were actually scalable, and capable of handling thousands of transactions per second.
However, Ethereum itself still hasn’t implemented a solution for scalability, which is desperately needed, as the current situation boosted its gas fees sky-high. But, Ethereum is too big and too important to be dropped by its community. While some did leave to find alternative solutions, others tried developing their own solutions on Ethereum itself, such as Circuits of Value (COVAL).
How does Circuits of Value (COVAL) Work?
Circuits of Value (COVAL) is a cryptocurrency developed and operating on Ethereum’s platform. It is one of the more complex digital assets, which can still act as a simple investment if investors simply choose to buy COVAL tokens and hope for the best. However, they can also use the project’s technology to achieve a lot more.
The COVAL Platform is being developed with the goal of moving value by using off-chain methods. In other words, native cryptocurrencies from their public and private chains can enter COVAL Sidechain Network, and be transferred securely, affordably, and flexibly.
The technology revolves around the concept of sending Vaults, which are essentially containers or baskets of tokens. These Vaults are represented by Sidechain Assets called Emblems, hence the name Emblem Vaults for the project’s containers.
What Problems does Circuits of Value (COVAL) Solve?
Circuits of Value (COVAL) seeks to use a rather unique method of moving tokens where a large portion of the work can be taken off of the main chain. In doing so, it could grant users the same possibilities they had before, only with a single transaction instead of multiple ones. Best of all, that includes more than a single token.
Moving value via off-chain methods
With Ethereum being the king of dApps, it is overburdened with small transactions that are taking place constantly. This also affects all those coins that operate on its network. As a result, there are many projects, including Circuits of Value, that have sought a solution in performing transactions off-chain, and then only recording the final result on the blockchain.
In doing so, there is no need to process every transaction that takes place, but rather a single one that now shows the new state of things. This is a similar approach to how Bitcoin’s Lightning Network works.
Increases flexibility, security, and affordability of transactions
Circuits of Value’s real value lies in the fact that it ensured the security of transactions performed off-chain, and thanks to the fact that only a single one can be made instead of multiple smaller ones including a variety of coins, the project has also significantly reduced the cost of sending transactions.
Best of all, it is flexible enough to include any coin and token that is EVM-compatible, which increases its flexibility and usability even further.
Benefits of Circuits of Value (COVAL)
So, the real question is what can Circuits of Value offer to you as a user? Why would you want to use this project? There are several advantages and benefits that come from using Circuits of Value, including:
Create custom combinations of tokens
The COVAL platform allows users to move value such as crypto assets using off-chain methods, and the way it does it is by allowing users to create custom combinations of tokens, including ETH, ERC-20 tokens, and even NFT tokens. They can all be combined into a single, tradable token called a Vault. COVAL can also be used to create Vaults, and it is issued as a reward to liquidity providers.
Rewards liquidity providers
Circuits of Value also has a very rewarding plan for its users who choose to lock up their tokens in order to help provide liquidity. As mentioned, the project uses Vaults to reward liquidity providers, which is a very different experience than any other deal in the crypto space. The process itself will be familiar to users, who just need to add their coins to the project’s liquidity pool and start receiving rewards.
Offers staking
Another benefit of Circuits of Value is the ability to engage in staking. However, as per the project’s website, COVAL tokens will be stackable on other platforms for various reward tokens. The project has set aside 5% of its total supply for staking rewards, which is approximately 100 million COVAL.
Opens up new opportunities
Finally, the project’s Vaults open up a variety of new opportunities, and it really allows for some flexible uses of its technology. For example users can create an Emblem Vault with multiple pool tokens, to make transferable liquidity pools. They can also create an Emblem Vault that contains one or more pieces of Collectible Art in the form of NFTs, and group it with some Bitcoin. They can combine multiple assets in a single token and create an entire tradable portfolio, or create a Vault that is held by the community, or some trusted third party, that multiple people can deposit to, with trust. The opportunities are many, and they continue to grow, which definitely makes them worth exploring.
Bottom Line
Circuits of Value is a very interesting, unique, and complex project that offers a new way to store and transport cryptocurrencies. Along the way, it reduces the cost, and it removes the need to perform numerous transactions instead of one, which also acts as a scalability solution, if indirectly. You can even treat its Emblem Vaults as crypto wallets, which is how the project itself sees them and treats them in most cases.
