Interoperability is promising when it comes to eliminating data-sharing challenges.  Interoperability between two blockchains boosts up the momentum of the activities of the blockchain. This will help bringing in more people together in Defi

Token Coin Tweeted: “#Tether is set to launch its new token wrapper project pTokens to develop an #EOS-#Bitcoin interoperability bridge. According to #Bitfinex and Tether CTO #PaoloArdoino, this will enable cheaper and faster #USDT transactions from one chain to another.”

Sydney Ifergan, the crypto expert, tweeted:  “An Interoperability bridge between EOS-Bitcoin from Tether via pTokens is good because it helps transfer value easily between the two inherently different blockchains.”

Anytime a token leaves its native blockchain, the bridge will do the job of locking it and issuing similar value to the partner blockchain that is bridged, this helping sustain a constant supply.

The pTokens focus on unlocking cross-chain liquidity for the entire cryptocurrency market, thereby making all cryptocurrencies and blockchains compatible with decentralized finance (#DeFi ) tools.

Tether pTokens Unlocking Cross-Chain Liquidity

The pTokens system helps in enabling the assets to be moved from their native blockchain to a different host blockchain.  The value is Pegged in and then Pegged out.  The pTokens system locks the underlying asset, and it provides a 1:1 pegged tokenized version of the value on the host blockchain during the pegged in process.

Paolo Ardoino, in the past, tweeted:  “2020 will see many cross-chain gateways being ready for production use. Liquidity will be split among many many many different solutions, making hard to really use them and accepted by exchanges. Only solutions that have great coverage of the most used chains will have a shot.”

During the pegged out process, the pToken systems will burn the tokenized asset, further releasing the corresponding asset value on the native blockchain.  The transaction between the host blockchain and the native blockchain is facilitated by interoperability bridging, making value transfer seamless and, therefore, important for the world of DeFi.

The pTokens make unlocking Cross-Chain Liquidity an easy process making it good for mass adoption and improved user experience in Defi.  The peg in and peg out friction is minimized.  This is a powerful method to make any token portable.  Thus, portable assets will be able to unchain liquidity.

The story of Tether, as told by Paolo Ardoino at the Crypto Compare Summit last month, is on the internet for those who are interested.