The Currency Analytics
By Ayobami Abiola
Crypto Wrapping or Crypto-Backed Assets
Cross-Chain Transfers
Every day the crypto space is growing. Blockchain developers are beginning to crush the partition walls between them and collaborating to combine ideas.
Decentralized Exchanges have evolved beyond what we know them to be, they have become the backbone of Decentralized Finance and yield farming.
One popular method is the creation of Wrapped Crypto assets (or crypto-backed assets) like Wrapped Bitcoin (WBTC), a token on Ethereum blockchain.
Crypto-backed assets might also not be very efficient considering many crypto assets there are on many blockchains they solution is cross-chain swaps or transactions.
Harmony protocol on the 24th of September, 2020 announced in a seven-minute-read long medium blog post:
“In short, we are building trustless bridges to Bitcoin, Ethereum and Binance chains for broader access of users and assets to decentralized finance.
Essentially, developers at Harmony protocol want to make it possible to swap coins from different blockchains without having to go through centralized exchanges or trusting…
“Our approach to unification is to embed the light clients of multiple chains into our existing validators… Here, a light client is another blockchain’s node using minimal…
Enabling cross-chain transfers will definitely open up a new wave of innovation- an advantage for DeFi protocols.
What arrow of innovation do you think is next in the quiver of Harmony Protocol?