Zilliqa, one of the biggest crypto projects in the world, announced on Twitter that they would be partnering up with PolyNetwork to build an interoperability bridge between the protocols.
“We’re building an interoperability bridge with @PolyNetwork2 to facilitate free flow of assets & cross-chain communication between @zilliqa @ethereum @Neo_Blockchain @OntologyNetwork @binance #SmartChain.”
Apart from being used for cross-chain asset transfers, one can also use the bridge to pay dividends on one chain to holders of an asset whose ownership is registered on another connected chain.
Establishing Interoperability With Poly Network
Blockchain protocols like Zilliqa, Ethereum, etc., are siloes, independent systems. They are so disconnected because their underlying systems are very different in the way they achieve consensus, run transactions, etc. As such, it becomes challenging to move assets from one chain to another.
“Blockchains do not have to function as islands. $ZIL holders, you can benefit from easy asset transfers, like converting BTC into an ERC-20 token. Use them for dapps/ payments! Or transfer them to ZRC-2 tokens & benefit from our super low transaction fees!”
Poly Network easily solves this problem by creating an interoperability layer that connects multiple chains in a decentralized manner. They build an inter-asset bridge that takes data or requests from one chain and passes it onto another.
Why This Bridge Is Going To Be Hugely Advantageous
Connecting Zilliqa to several other blockchains like Bitcoin, Ethereum, NEO, Binance Smart Chain, among others, is going to be hugely beneficial because of the following reasons:
- Zilliqa has comparatively lower transaction fees, which will be of great use for both the developers and the token holders. Plus, its high throughput can help run the most complex contracts without compromising speed, performance, and security.
- Through this bridge, the developers can integrate cross-chain logic in their smart contracts to create interoperable dApps.
- Zilliqa’s on-chain DEX ZilSwap will convert the ERC20/BEP20/NEP5 assets to Zilliqa as ZRC-2 tokens. Switcheo’s DEX will also provide liquidity pairs, which will enable users to earn trading fees and $ZWAP (Zilswap’s governance token) liquidity mining rewards.
- On the flip side, $ZIL and ZRC-2 token holders can bridge their tokens to Ethereum and Binance Smart Chain and use these assets on DeFi products built on top of the partner chains. Holders can also trade these tokens on Demex, a decentralized spot and derivatives exchange.
The bridge is currently under active development.