Summa, cross-chain financial service provider, is hosting the world’s first cross-chain auction on November 15, 2018. The auction will allow participants to bid on the Ethereum Blockchain using Bitcoin for a chance to secure one of 10 limited-edition, non-fungible Summa tokens. Tokens exist solely as a mechanism to signify proof of participation in the first auction of this kind.
While cryptoassets like Bitcoin and Ethereum have exploded in recent years, they remain siloed in separate chains, limiting risk management, cross-chain investment, and cross-chain transaction opportunities. Decentralization and lack of clear regulations have made cryptocurrency extremely volatile, which has, in turn, prevented widespread usage and adoption, especially from large institutions. Summa exists to provide a suite of cross-chain financial products that enable users to hedge risks and manage tax burdens in a trustless, non-custodial, and verifiable way that has never been possible with traditional financial infrastructure and tooling. Summa’s technology uses a first-of-its-kind series of smart contracts that enable cross-chain transactions between Bitcoin, Ethereum, Litecoin, and Zcash.
“Cryptocurrency will never move beyond a speculative instrument until tools exist that help reduce the volatility and unnecessary risk associated with it. With Summa, not only are cross-chain transactions viable, but users will be able to hedge risks and manage tax burdens in a way that isn’t currently available in cryptocurrency,” said Matthew Hammond, founder, Summa. “We’re excited to use this auction as the first proof-of-concept for our suite of financial products that have real world implications for both crypto and traditional financial systems.”
Distributed ledgers and blockchain technology transform the way data is managed, enabling unalterable records that don’t require third-party verification. This means faster settlement times, improved contractual term performance, lower counterparty risk, and greater overall transparency, among key benefits. The impact on financial markets is substantial, with estimates that blockchain will save banks up to $20 billion by 2022 (see Accenture insights). Goldman Sachs, HSBC, JP Morgan Chase, and Santander are among the financial institutions that have invested in blockchain, further underscoring the need for technologies that reduce overhead, improve transparency, and eliminate unnecessary risk.
Summa aims to help create a more mature cryptocurrency landscape. Cross-chain contracts lay the groundwork for a suite of financial tools that will enable businesses and speculators to fine-tune their exposure, manage portfolio risk, and hedge volatility in cryptocurrency.
