Connect with us

Bitcoin

Credit Card Origination – Automation

Published

on

Within the realm of credit card origination, automation is key. Financial institutions that can’t keep up with today’s increasingly time-sensitive consumer are going to lose that consumers business to an institution that can.The whole idea behind automation in credit card origination is speed.

Because credit cards’ simple nature and wide appeal, credit card origination is a high volume, low risk undertaking. In these types of situations, automation is crucial. Because they are comparatively low risk, credit cards can be automatically originated through a credit decisioning system with virtually no manual intervention. This allows financial institutions to dramatically increase the number of applications they can process without having to change their system or process at all.

Because credit cards are a popular, high volume business, financial institutions require an efficient automated process for originating, approving, and issuing credit card products. This means that every aspect of the credit card origination process must be fully streamlined so that the customer experience is as fast and easy as possible.

There are many credit decisioning solutions in the marketplace that meet the basic requirements for an automated origination system. However, there are additional requirements for an automated credit card origination system that are driven by the unique characteristics of credit card products as mentioned above.These requirements address the need for a credit card origination solution that is fast, streamlined, and comprehensive.

The first requirement that a credit card origination solution should support is Straight through Processing. Straight through Processing allows a decision engine to process credit card applications from beginning to end in a completely automated fashion. Any time a manual review is required, the system can drop the application into a manual review queue. Once the manual review is completed, the application can immediately be re-introduced into the automated process right were it left off. Straight through Processing allows financial institutions to efficiently process the high volume of applications generated by their credit card origination initiatives.

The second requirement involves the end of the credit card origination process. Once a customer is approved for the product and the account is booked to the appropriate system of record, the consumer wants to start using their new card. Unfortunately, most banks can’t fulfill this desire. The account may be created, but the consumer will not have the actual credit card for a couple weeks. Instant issuance allows consumers to start using the card the second after their account is created. Either by providing an interim credit card (like a receipt) or by actually printing off the final card at the point-of-sale, financial institutions can enable their customer to start utilizing their product immediately.

These two additional, credit card specific, requirement for an automated origination solution enable financial institutions to realize the best practices needed for the competitive credit card origination market.

Bitcoin

Chingari- India’s First Blockchain-Based Social Infotainment Platform

Published

on

Chingari- India's First Blockchain-Based Social Infotainment Platform

Chingari, a short-video app, has raised $19 million to introduce crypto as a means of revenue for artists and subscribers. Among the investors in Series A were Republic Crypto, Alameda Research, Galaxy Digital, Solana Capital, and many others.

The firm says the funds were obtained in USDC and Tether, which are less volatile and backed by dollars. This investment will help the business become a worldwide blockchain-based social infotainment platform. The current capital injection will create a new currency, $GARI, in conjunction with the decentralized computing platform Solana.

These coins would let the network monetize more creators. The funds will be used to test the live blockchain, Chingari Integration beta, and the forthcoming $GARI token sale.

Sumit Ghosh, CEO of Chingari, said after the fresh funding round:

“The future of a platform lies in its creators. On one side, we have an immense talent pool that needs to be explored and rewarded with an ethical amount of monetization. On the other side, while Crypto experiences a rapid expansion in India, $GARI is poised to make it mainstream. We are infusing the two, through robust strategies and incorporation of the most-promising industry advances.”

For Chingari, the platform’s non-fungible tokens (NFT) and the opportunity for fans to support their favorite artists are essential elements. The app has seen a 4X increase in downloads in the last six months after losing early traction to heavyweights such MX TakaTak, Dailyhunt’s Josh, and ShareChat’s Moj.

In April 2021, Chingari raised $13 million from investors, including OnMobile, a mobile entertainment business. The software boasts 78 million downloads on Google Play and Apple App Stores, with 30 million monthly active users (MAUs).

Aside from live blockchain testing, the near-term plan is focused on the forthcoming $GARI token sale. The business hasn’t said whether it will go online until the Indian government allows crypto.

Moreover, Aditya Kothari, Biswatma Nayak, Deepak Salvi, and Sumit Gosh created Chingari in 2018. Users may post videos, connect with friends, meet new people, trade material, and more. Content producers get Chingari Coins, which can be traded for money.

Users enjoy:

  • Customized videos for them
  • Realistic AR filters
  • Mega-Song Library
  • More than 20 languages Content

Chingari has received the ‘Times Business Awards 2021’ for ‘Most Popular Social Media App.’ This outstanding award has inspired Chingari to surprise users with the best in entertainment, technology, and innovation.

Chingari is India’s first blockchain-based Social Infotainment platform, powered by token $GARI. Chingari hopes to transform the industry for creator monetization with its inception and the fresh round of funding while empowering its skills.

Continue Reading

Bitcoin

How Steady State Will Revolutionize Insurance for the DeFi Industry

Published

on

investors looking for safe haven bitcoin

Risks such as flash loan exploits, hacks, and stablecoin de-pegging are a serious deterrent for DeFi adoption. Now Steady State is seeking to push DeFi out of the “fear zone” by insuring funds held on decentralized protocols.

Insurance for DeFi

Steady State is launching a comprehensive insurance solution for decentralized finance (DeFi). The project shifts responsibility from individual users, and the protocol holding the underlying assets, and transfers that responsibility to Steady State insurance. Theoretically, this should allow all parties to sleep more soundly at night.

Decentralized finance in its current form can never fully realize its potential: the risks from flash loan exploits, hacks, and stablecoin de-pegging mean that a large swathe of potential investors will simply never venture into the market. Any cursory examination of the sector makes it easy to understand why that is.

A single flash loan attack in February of this year drained $37 million from C.R.E.A.M. protocol tanking the price of its native token by 30% in half an hour. In May, flash loan exploits on a single chain, Binance Smart Chain, totalled $167 million. These sorts of reports effectively place a handbrake on the market, slowing its growth and making bigger investors and institutions turn away.

Without the additional safety that an insurance solution such as Steady State can provide, the growth of the sector will always remain underwhelming.

Steady On

Steady State posits that insurance issued through smart contracts can help to create a more efficient and better solution for decentralized finance. Parts of the insurance process which are currently carried out by humans (with all their inherent biases) can instead be carried out logically with code.

Users can interact with the platform by first staking their assets as collateral, with Steady State using the capital to underwrite DeFi protocols. Users are rewarded for staking while simultaneously safeguarding funds.

The project operates on what is called a direct-to-protocol basis. According to Steady State, the use of their insurance coverage and index pools optimizes capital efficiency. Steady State sources liquidity in a novel way which they say cannot be accomplished with user-centric models.

All of this takes place in a community-centric environment, creating insurance policies that go beyond individual cover and instead cover multiple risk vectors for entire communities. Steady State has tagged this model “DeFi insurance 2.0”.

Building the Market

Steady State hopes that their approach to DeFi insurance will allow for the growth of a true risk market, inviting users to buy and sell collateral on a liquid secondary market. This will allow users to sell funds that may otherwise be locked up in insurance smart contracts. Over time it is expected that this form of collateral trading will help to further spread risk and make the ecosystem more robust.

This will, in turn, help to build the credibility of the DeFi market, inviting large investors and institutions to participate in a number of ways. Insurance could even be a strong primary driver of adoption, as an area in which institutions can see a path towards direct participation in the market.

If Steady State can create a solution which onboards existing DeFi users and attracts a fresh influx of capital from institutions and whales, the company could indeed be set to revolutionize the insurance industry.

 

 

 

Continue Reading

Bitcoin

Why Shiba Inu (SHIB) Rallied 266% Following Biggest Dump In Its History

Published

on

Picture of a hand holding a Shiba Inu coin

Shiba Inu (SHIB) is still on a bull trend after its meteoric rise last week. The asset had rallied 266% and by the time the rally reached its peak, SHIB had grown over 400% in a matter of hours. Its sudden rise in price has been attributed to a number of things. One of the most prominent being the tweet by Elon Musk of his pet Shiba Inu which he had gotten last month.

However, the price recovery had occurred at a point where the asset had been seeing massive amounts of coins dumped that led to a dip in its price. SHIB had hit a new six-month high at this point and sell pressures had mounted in the community. This was mostly due to the history of the meme coin which has no utility to speak of except the hype from its backers.

SHIB Holders Dump Billions

Santiment reported the digital asset had seen a record dump following its price rally. A reported 31.07 billion coins had been dumped by holders. Mostly from wallets that held between 1 million to 10 million SHIB in their wallets.

Related Reading | FTX CEO Sam Bankman-Fried Reveals Reason Behind Billions Of Dollars Tether Purchase

An interesting fact about this dump was that it had been mostly small traders who were dumping their bags. Contrary to expectations, Shiba Inu whales have mostly held their bags through the rally. While small-time traders shed their holdings onto micro traders.

The dump patterns had shaken the price of the asset, causing its hold on its new highs to falter in the meantime. But this would prove to not have a lasting effect on the market given that the price of the digital asset had rebounded from its Thursday lows, with a green seven-day trading average of 83.45%.

SHIB price falls to $0.000028 | Source: SHIBUSD on TradingView.com

Shiba Inu Benefiting From The Altcoin Craze

Bitcoin has shown investors the potential of investing in cryptocurrencies. But at its current value, investors have moved on to find what could be ‘the next bitcoin’ and altcoins have generally benefited from this sentiment.

The push for short-term gains in the market is also a reason behind the success of meme coins like Shiba Inu. Over the long term, top cryptocurrencies like bitcoin and ethereum have proven to be the better choice. Altcoins, however, have shown the most promise with short-term gains, especially coins which are hype-driven.

Related Reading | Bitcoin Over $100,000 Is Still Possible By Year-End, Says Research Analyst

Projects like these will experience significant price movements in reaction to things like a celebrity tweeting or posting about them. Investors can see massive gains from investing in these projects in just a matter of hours. But these coins crash as quickly as they had risen. Usually due to the hype around them dying down. Or in worst-case scenarios, the developers execute a rugpull and leave investors to deal with their now worthless coins.

Featured image from CoinGecko, chart from TradingView.com

Continue Reading

Bitcoin

Elrond Network Announces Its Acquisition Of Capital Financial Services S.A

Published

on

Elrond Network Announces Its Acquisition Of Capital Financial Services S.A

Elrond Network, the internet-scale blockchain acquires Capital Financial Services S.A which operated under Twispay. This firm has the license to operate on Electronic Money Institution (EMI) in the European economic area.

Significantly, this accession provides the overall transfer of Capital Financial Services S.A. shares and it allows Elrond to provide access broadly as it comply with current regulations. Besides, this would allow the company to provide other features to the customers. For example, they can provide customers with IBAN accounts, linked debit cards and even payments in e-money currencies.

Capital Financial Services S.A. provides online payment services to 300 merchants including Blue Air, Romania’s airline, as it is the principal member of Visa and Mastercard. This payment processing service provides an additive feature as e-money where merchants can make payments in e-money currencies.

E-money was created as an digital alternative for money to do automated transactions in payments and ecommerce. On the other hand, Elrond Network aims to expand the functionality of this tried-and-true value transfer framework. The firm wants to combine it with fast, scalable, and low-cost blockchain technology.

According to the CEO of Elrond Network, Beniamin Mincu, the goal of Elrond network is to provide easy access to anyone anywhere. The platform focuses on building an infrastructure for high bandwidth, low latency, and transparent financial services. He also added:

“To accomplish this, we are proactively collaborating with regulators to operate in a fully compliant manner within the boundaries set by European law. Users, merchants, businesses, and financial institutions would all benefit greatly if money flows occurred with near-instant settling times, at 100x less cost than we currently pay, with complete transparency, and improved reliability.”

Moreover, CEO of Twispay, Augustin Dobre says that they are preparing the groundwork for the significant range in financial services efficiency.  It would be achieved by the contribution of Elrond network with the expertise of the Capital Financial Services S.A. team in regulated financial services and EU licenses.

The approval of Romania’s National Bank is the final step in the acquisition of Capital Financial Services S.A. by Elrond Network. This is a pivotal move for Elrond Network, where the firm will update on the process that leads to the transaction’s completion.

Continue Reading

Bitcoin

Derived Raises $3.3 Million to Build a Decentralized Synthetic Assets Platform

Published

on

derived

Derived Finance, a decentralized synthetics assets trading platform, announced a $3.3 million funding round led by over 30 crypto venture capital firms.

Announced Tuesday, Derived Finance successfully completed a private funding round raising over $3.3 million shortly before launching their initial DEX offering, slated for October 13th. The funding will be used to develop key features for the Derived Finance ecosystem, build additional multi-chain solutions, and add more synthetic assets to the platform.

The funding round attracted some of the biggest names in the crypto venture capital industry led by GSR and included AU21, Poolz, Nabais Capital, Dweb3, Occamfi, and Genblock Capital, among others. California-based AU12 Capital and Lisbon-based crypto VC Nabis Capital also participated in earlier rounds.

“We are thankful to all the investors who reposed their faith in us and joined the fundraiser. More than 30 Venture funds participated in the funding round, with over $3.3 million raised,” Bharat Verma, CEO of Derived Finance. “Together we will use the synergies to build Derived Finance, which is the next-gen Multi chain Synthetics Trading Platform.”

Simply put, Derived allows users to trade assets without owning them or holding the underlying asset allowing them to trade with a reliable and easy-to-track price using derived tokens. Users can trade on leverage on both traditional and digital assets while remaining decentralized.

According to the statement, the private investors in the round aim at growing the value propositions the platform offers in building the global decentralized trading of synthetic assets. Derived, a Cardano-based platform, is the first-of-its-kind decentralized multichain DEX that allows trading of synthetic assets. The platform leverages the interoperability qualities of Polkadot to provide cross-chain trading services on multiple blockchains including Ethereum, Polkadot, Cardano, Avalanche, and Binance Smart Chain, etc.

Additionally, the platform allows users to leverage (up to 3X) staking of its native DVD token (launched in an IDO) and minting of USD-stablecoins. It also allows users access to unique features in digital finance trading such as the ability to create Hybrid Tokens (both in the traditional and digital finance space) and access to features like binary options, multiple native currency support, 0% Slippage, and unlimited liquidity with other features set to launch in the future.

The funds will further the development of multi-chain support systems, which will be key for the platform to operate across a wide variety of crypto ecosystems and provide efficient transaction routes for traders.

Finally, the team is working on offering multiple traditional currencies on the platform with an aim to promote the global adoption of decentralized finance and crypto.

Continue Reading

Bitcoin

Top 3 Altcoins Trending for the Day

Published

on

Top 3 Altcoins Trending for the Day
  • Top 3 trending altcoins are ARV, TABOO and $KUMA.
  • Ariva (ARV) spikes to 131% in its price value.
  • Altcoins are great influencers for the growth of the crypto industry.

Altcoins are heading up higher playing the chief role holding a larger user base connected from all around the world. Besides, Altcoins have the potential to reflect a great impact on the crypto industry influencing a lot of investors and institutional firms. 

Most importantly, people’s interest in crypto and digital technologies has skyrocketed in 2021. Thus this year has been more volatile for cryptocurrencies which is now becoming a popular culture in the world. Notably, a massive focus and attention is being paid to the hot crypto industry. 

According to CoinGecko, the top 3 Altcoins which are trending in the market today are, Ariva (ARV), Taboo Token (TABOO) and Kuma Inu (KUMA).

1. Ariva (ARV)

Ariva (ARV) is a popular tourism digital asset for active use and travel network in the near future. Moreover, being a tourism currency, it can be spent across any part of the world using its crypto wallet. Thus, it reduces the burden for the users to carry along the liquid cash and debit or credit cards while travelling. Also, ARV coins benefit the users to earn money for reserving and sharing contents. 

Ariva’s price surged to 131% in the last 24 hours, surprising the entire crypto market through its spike in the value. Also, the current value of ARV is $0.00107695 with a total supply of 100 billion ARV coins. In addition, the creation of ARV to the crypto space, it can be used as a global payment service through the power of blockchain technology. 

2.Taboo Token (TABOO)

The specialty of TABOO tokens is its adult non-fungible token (NFT) which is in recent trend streaming all media projects. It is more prominent in delivering high and exclusive contents in all media sources. It includes all supermodels, popular stars to provide the most unique contents with highest quality. Thus, through its trending contents on media platforms, TABOO will soon become the best asset in the industry. 

According to CoinGecko, TABOO’s live value is $0.00555362 with a circulating supply of 9.8B TABOO coins and a total supply of 9.78B. Additionally, if the users have more taboo tokens they are accessible to more contents reaching to different tiers as well. 

3. Kuma Inu ($KUMA)

KUMA is a decentralized meme token which is growing mature to hold the power of the Kuma Inu community. This popular DeFi cryptocurrency network will govern these Kuma Breeder, Kuma DEX, and Kuma NFT projects. Thus, it provides the users a simple and an elegant service with its decentralization platform. 

As per the CoinGecko data, $KUMA holds the value as $0.000000541825 with 36.0% hike in the last 24 hours. In addition, its circulating market supply is 120 Trillion KUMA coins and a total supply of 1 Quadrillion. Through its simple and governance feature it will dive into a vibrant ecosystem. 

Thus, Altcoins are scoring more attention seeking new followers and contributing large to the crypto industry. It is clearly visible that there is a huge inflow of attention from users which will result in a tremendous growth of the digital currencies.

Continue Reading

Bitcoin

Bitcoin Shocktober Continues To Outperform Altcoins En Masse

Published

on

Picture of a bitcoin with a gold hue

In the crypto top 10 by market cap, Bitcoin reigns supreme with no other cryptocurrency close to matching its performance in the daily (-1%) and weekly (16.6%) charts. While BTC’s price trades at $57,415, near its previous highs before May’s crash, the altcoin market lags.

BTC with minor losses in the daily chart. Source: BTCUSD Tradingview

The second cryptocurrency by market cap, Ethereum (ETH), records a 3.9% loss in the daily and only a 2% profit in the weekly chart. In the meantime, ADA (-4.7%), XRP (-5.7%), SOL (-5.4%), DOT (-6%) are in the red alongside other major coins.

Related Reading | Bitcoin Over $100,000 Is Still Possible By Year-End, Says Research Analyst

In higher timeframes, Bitcoin widened the performance margin with the rest of the crypto market, according to a recent report by Arcane Research. Up 41% over that period, the research firm claims the “Bitcoin Season has started”.

Know by traders and veteran operators as a period in the cycle when Bitcoin outperforms every other asset, it is believed to precede a bullish bull-run in altcoins.

As seen below, BTC has more returns than Arcane’s Large Cap Index only up 21% in the 30-day chart. This could lead to more appreciation for Bitcoin as operators fuel a “loop”, as the research firm called it”, where either BTC or some altcoins outperform:

(…) the cryptocurrency market periodically switches between overperformance of altcoins (altcoin season) and overperformance of bitcoin (bitcoin season). Historically, when retail traders have observed that bitcoin starts to beat their altcoin holdings, they have not been late in dumping their altcoins for bitcoin instead (…).

Bitcoin BTC BTCUSD
Source: Arcane Research

Bitcoin Takes Back The Crown As It Prepares For More Gains

Additional data provided by research and consulting firm Delphi Digital indicates that only 4 cryptocurrencies out of the first 100 listed by CoinGecko have been able to outperform Bitcoin in the daily chart. In the last 2 weeks, only 12 have achieved something similar.

Related Reading | Bitcoin Retakes May Highs With Spike In On-Chain Activity, Next Target $60K?

Moreover, the research firm records a pattern in the Bitcoin and Ethereum Open Interest (OI) for their futures. The first and second cryptocurrencies by market cap have been “mirroring each other” since Q3, 2021, until very recently.

As seen below, October brought a change in that dynamic with the ETH (OI) diverging from BTC’s. However, Delphi Digital noted that the latter is still away from May’s highs and, therefore, not in a FOMO state. The research firm added:

Since May 2021, crypto-margined futures have been on a multi-month downtrend as cash-margined futures gain a significant share of futures OI. One of the main implications of this is reduced directional convexity.

Bitcoin BTC BTCUSD
Source: Delphi Digital via Twitter

As NewsBTC reported yesterday, there has been an uptick in BTC’s on-chain activity that suggests an increase in institutional participation.

The potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission could operate as a bullish catalyzer to finally provide the bulls with enough momentum to reach new highs.

Related Reading | On-Chain Data Shows Bitcoin Miners Hold Off On Selling Despite BTC Rallying Above $57k

On the contrary, it could also become a “buy the rumor, sell the news” event potentially marking the top of the current cycle. This could be beneficial for the altcoin market, in the mid-term.

Continue Reading

Bitcoin

Wanchain Launches First Cross-Chain Bridge with Polkadot Link, Bringing EVM Smart Contracts to the Department of Transportation

Published

on

Wanchain Launches First Cross-Chain Bridge with Polkadot Link, Bringing EVM Smart Contracts to the Department of Transportation

Wanchain, the Wide Area Connection chain, is the world’s leading decentralized blockchain connectivity solution. Our goal is to accelerate technology acceptance by creating fully decentralized connections that link up the world’s many siloed blockchain networks. Programmers can use this cross-chain connectivity to create completely decentralized cross-chain applications that will power the future of DeFi. Developers on Ethereum, Wanchain, Avalanche, Moonriver, and other blockchains can use Wanchain’s blockchain-based integration solution to integrate DOT into one’s application areas.

First Cross-chain Bridge:

Wanchain, the world’s leading decentralized blockchain connectivity alternative, is delighted to announce the incorporation of Polkadot’s decentralized, non-custodial cross-chain infrastructure. Polkadot is a distributed data heterogeneous multichain design formed by Ethereum co-founder Gavin Wood, and this is one of the country’s most popular cryptocurrencies. The native token of Polkadot is $DOT.

Polkadot is now connected to the more enormous cross-chain Defi country thanks to this integration. Development teams on these blockchain channels can now build decentralized blockchain technology using $DOT thanks to straightforward bridges connecting Polkadot to Ethereum, Wanchain, Moonriver, and Avalanche. To put it another way, $DOT, the top-10 cryptocurrency by market valuation, can be traded cross-chain and used with EVM-compliant intelligent contracts.

Wanchain’s Vice President of Business Development and It operations, Li Ni, says:

“We are convinced that blockchain technology will only become widely adopted once assets, data, instructions, and users are just no longer isolated on a single chain or bound by a single standard.”

Wanchain launched cross-chain bridges connecting Moonriver and Avalanche to the enormous cross-chain Defi industry earlier this month. Polkadot is already connected to the rest of the blockchain world thanks to Wanchain.

The cross-chain interoperability of investments, data, and intelligent contract starts calling will define the following process of utilization of innovation. Polkadot’s addition solidifies Wanchain’s stance as the largest and most powerful cross-chain solution, and the result is a significant step toward a multichain future that is fully compatible.

Continue Reading

Bitcoin

XDEFI Wallet Launched Its Most Awaited Wallet to the Public

Published

on

XDEFI Wallet Launched Its Most Awaited Wallet to the Public

A cross-chain wallet extension XDEFI Wallet has launched its most awaited wallet to the public. At present, the wallet is available on the Chrome Store. XDEFI has been developed with decentralized finance (DeFi) and non-fungible token (NFT) power users in mind with many innovative unique features such as Ape Mode, it will redefine the experience of speed in a crypto wallet. XDEFI Wallet is backed by many DeFi-centric funds and venture investors. 

Users of XDEFI can use Ape Mode a revolutionary approach that will make sure that transactions operate in the next block, across Terra, THORchain, Ethereum, and EVM blockchains and Bitcoin.

Accordingly, the Ape Mode of XDEFI Wallet uses a proprietary gas algorithm to make sure that transactions get into the next block, without wasted gas. Therefore users can utilize Ape Mode to get a fast and speed edge for their most important transaction even the network is more congested.

Moreover, the CEO and co-founder of XDEFI Émile Dubié stated,

“Ape Mode will be an indispensable edge for XDEFI Wallet users with XDEFI, users should never again miss an opportunity due to a slow transaction“.

Henceforth, XDEFI wallets also show NFTs from all chains in a single Instagram-style gallery. XDEFI Wallet is designed for the multichain era, enabling users to move flawlessly over protocols and automatically add new chains. It supports Ethereum and most other EVM networks are built-in and soon XDEFI Wallet will start support for Avalanche, Arbitrum, and Solana.

Even more, XDEFI Wallet is developed for NFTs, because NFTs became a larger part of the crypto landscape. Both automatic deduction of NFTs and a customizable drag-and-drop NFT display grid are offered by the XDEFI Wallet. It also added a new Buy Crypto option, enabling users to bring their fiat into DeFi through a third-party Ramp.  

Continue Reading

Bitcoin

Are Bridges Solving the Interoperability Problem?

Published

on

Are Bridges Solving the Interoperability Problem?

The blockchain landscape is as vast as it is diverse. Filled with a rapidly growing number of tools, platforms, and protocols, each designed to boost the utility of cryptocurrencies and provide value to users.

But in this complexity, a major obstacle has emerged. Blockchains simply can’t interact with one another. Ethereum, Binance Smart Chain, Solana, Terra, and dozens more blockchains are effectively operating in isolation, due to a lack of in-built interoperability. This has had a knock-on effect of dividing the blockchain community, who often need to pick and choose which platform to get to grips with and support.

As it stands, to interact with services on multiple blockchains, users would need to have at least a basic understanding of how that platform works, hold a wallet, and own at least some of its native assets. Understandably, few individuals and businesses want to go through the hassle of familiarizing themselves with multiple platforms.

Over the years, a range of options has been pushed as potential solutions to this challenge. These include interoperability solutions like Polkadot, which enables interblockchain communication by connecting distinct blockchains through a central relay chain. As well as Cosmos’ interblockchain communication protocol (ICP), which allows homogeneous blockchains to exchange data and value by providing a single standard for communication.

Image credits: Cosmos

But despite this, some of the earliest and least complicated solutions are providing to be the most effective. We’re talking about bridges — deceptively simple platforms that allow users to easily move their assets from one blockchain to another (a process known as bridging).

The way these platforms work is typically relatively simple. Let’s say you want to move 500 USDT from the Ethereum network to Avalanche. You’d select your bridge, choose your input (Ethereum) and output networks (Avalanche), select the asset (USDT) and amount (500, enter your output address (your Avalanche address) and initialize the bridge. The bridge smart contracts would then burn 500 USDT on Ethereum, and mint 500 USDT on Avalanche — effectively moving 500 USDT between chains without running the risk of accidentally doubling the total amount of USDT in circulation.

Other bridges, such as Celer’s cBridge, keep liquidity pools on each chain rather than burning tokens. When a user bridges their assets, their funds on the origin chain are simply added to that chain’s asset pool, while the equivalent amount of funds on the destination chain are released to their address. This effectively accomplishes the same thing, without requiring token burns (a feature not all blockchains support).

The platform is able to support trustless any-to-any liquidity transfers across close to a dozen networks (including Ethereum, Polygon, Binance Smart Chain, Arbitrum, and Avalanche) and has seen its use soar in the last four months, climbing from $10m total volume in its first month to over $10m per day in October — demonstrating the rapidly increasing demand for cross-chain liquidity.

The team behind the platform is now finishing up v2.0 of cBridge — bringing with it increased liquidity, more chains, improved benefits for liquidity providers, and more.

Other platforms, including the PancakeSwap bridge, Terra Bridge, and even Binance’s bridge platform have also seen a dramatic uptick in use over the past several months, as an increasing number of users look to interact with projects and services building on alternate blockchains.

By effectively solving the liquidity issue by allowing users to move their assets from one blockchain to another at low cost, without requiring a steep learning curve or excess capital, cross-chain bridges are quickly becoming the go-to solution for those looking to regularly interact with multiple blockchains.

And given their rapid adoption in recent months, it looks likely that they will continue to gain momentum in the months and years ahead as more people recognize the benefits of utilizing multiple blockchains.

Continue Reading

Trending