Blockchain Interoperability – Connecting Ethereum and Binance Smart Chain. Why is Cross-Chain Technology Important?

By Stan Peterson
Published August 30, 2021 Updated August 30, 2021
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Blockchain Interoperability – Connecting Ethereum and Binance Smart Chain. Why is Cross-Chain Technology Important?

By Stan Peterson
Published August 30, 2021 Updated August 30, 2021

Since the launch of Bitcoin over a decade ago, blockchain, the underlying technology on which the premier coin was built, has evolved. From the blockchain 1.0 era ushered in by the launch of the pioneer crypto platform to blockchain 2.0 championed by DApps and smart contracts compatible network, Ethereum, right to blockchain 3.0 which, according to various reports, is key to global adoption and survival of the permanent and transparent ledger. 

Whilst plagued with too many problems, the inability to communicate seamlessly with other chains has been identified as a core shortcoming of the distributed ledger. Amidst the proliferation of blockchain and the recent infusion of over $2.3 billion by VCs in all blockchain-related start-ups, the transparent technology is still a cause for concern, especially for enthusiasts keen on seeing the technology reach unimaginable heights. 

Interoperability, the adeptness of computer systems, in this case, blockchain technology to efficiently exchange information, is lacking and has impeded imminent growth. After a careful and in-depth series of research, experts proposed cross-chain technology as the ideal answer to the interoperability question. 

Cross-chain Technology; The Answer to Blockchain Interoperability? 

While a good development, the increasing usage of Bitcoin and Ethereum, two of the most valued crypto platforms as reported by CoinGecko, has given rise to a conundrum; scaling limitations. Since they mostly operate on a single chain, it has become difficult to seamlessly send and receive assets — the primary advantage of cryptocurrencies over fiat, prompting the need for advanced technology. 

Already a buzzing topic in the crypto space, cross-chain in simpler terms is a nascent technology that seeks to encourage or foster the access, usage, and transfer of information and value between decentralized networks without intermediaries. 

The ineptness of blockchain to exchange information and value between networks has, indirectly, acted as a cordon to its implementation and usage. With developers tilting towards several aspects of the crypto and blockchain space, a plethora of projects have been launched to solve this problem, thus, enabling the flawless exchange of information and value between isolated chains, Hashbon Rocket is one of such.

A cross-chain decentralized exchange platform [CDEX] as unequivocally stated on the website, Hashbon Rocket lets you exchange and swap ERC-20 tokens for BEP-20 tokens. Hashbon Rocket is ready for launch on the 9th of September and they are holding a pre-sale at the moment. Albeit similar to Uniswap, the second-largest DEX based on trading volume and market share, this new generation platform sets itself apart by enabling the exchange of data and value between chains — interoperability. Besides this, the executive team is seeking to integrate EVM [Ethereum Virtual Machine] compatible blockchains, as well as Matic, Ethereum Classic, Huobi, Fantom, XDai, et al. 

Armed with a native token, HASH Token, Hashbon Rocket will allow participants access and use various unprecedented features. On the MVP stage of CDEX network, cross-chain exchanges or interactions will be executed by; 

  • Liquidity providers [LP] — leveraging Hashbon Rocket’s infrastructure will set trading pairs for all ERC-20 and BEP-20 token exchanges. 
  • Clients in the ecosystem will transfer and receive tokens. 
  • Arbiters — the onus of confirming deals and cross-chain communication falls on them. Per the executive team, HASH Token holders can run Arbiter nodes. Additionally, token swaps or exchanges on the ecosystem will be ensured by the network of Arbiters, in conformity with the project’s white paper. 

Conclusion

With Ethereum gas prices hitting and exceeding the $17 mark for ERC-20 transfers, the need for cross-chain technology cannot be overemphasized. The nascent system could act as a springboard to the growth of both the $2.2 trillion crypto market and the blockchain space, ensuring that the potential-replete ledger is used to its full capacity. 

 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
422 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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