The decentralized development solutions company LiquidApps has announced that they will be having a collaboration with Bancor. This collaboration is the first step towards their transition from Ethereum to parachains, a service provided by the cryptocurrency Polkadot.
The bridge that works on DAPP Network technology will enable Bancor to expand their liquidity pools to other blockchains. The first one will be Polkadot.
Polkadot, known for collaborative development and interoperability, has gained quite a bit of success in the cryptocurrency market. It was created by the former co-founder of Ethereum, Gavin Wood, back in 2016.
Why is Polkadot Important?
According to the experts of economics and information technology, the hub-and-spoke model of Polkadot is the next essential step for the world to move to a decentralized and scalable financial ecosystem. It is, in part, due to the interconnected and interoperable network of parachains on which this system is based.
Polkadot and Ethereum Share More than just a Founder
Polkadot and Ethereum are operating parallel to each other. Ethereum is currently the largest blockchain network and has the highest liquidity. The liquidity on Ethereum has increased over the last couple of years, especially during the Decentralized Finance boom of the last year. It led to an increase in gas fees, and companies are now looking for cheaper blockchain solutions. This is an opportunity for Polkadot.
However, Polkadot still needs Ethereum. In order to maintain their competitive edge, the parachains in Polkadot will need to access the liquidity from Ethereum. It is imperative for developing the next generation of DeFi (Decentralized Finance) applications.
The Role of Bancor
Bancor, being one of the leaders in the Automated Market Maker (AMM), is starting the process of bridging different networks. It is important to make sure that liquidity is not soiled. This endeavor will be powered by DAPP Network technology.
Behind the Scenes Support
Behind the scenes of the cross-chain bridge between Polkadot and Ethereum is the universal bridging framework and the lightweight EdgeDSP software developed by DAPP Network. Combined, the whole system facilitates a smooth flow of data and tokens across the blockchains. And that also allows for cross-chain execution of smart contracts.
The use of the lightweight application EdgeDSP, which is based on WASM, will highly decrease the costs for bridge operators operating decentralized nodes. They can now do this via simple web browsers.
From the CEO of LiquidApps
Beni Hakak, the CEO of LiquidApps, said that their company is proud to be a part of the interoperability of blockchains and their collaboration with Bancor and Polkadot. He added that they are providing the backbone to build a sustainable and scalable decentralized ecosystem by implementing the underlying framework, which is making the cross-chain bridge possible.
Views of the CTO of Bancor
Yudi Levi, the CTO of Bancor, said that interoperability is the key to the development of a multi-chain decentralized financial system. He further added that it is exciting for them to expand their company’s liquidity to Polkadot with the help of LiquidApps.
What does it all Mean?
In simpler words, it won’t be wrong to say that the world economy has started a transition towards decentralization. The ability to send tokens across blockchains means the same as sending payments across banks, and this will give momentum to the transition.