Bridging the gap between different cryptocurrencies is paramount to ensure future growth. New solutions need to be developed to make this happen. Syscoin Bridge is one of the projects that could shape the future of the cryptocurrency industry as a whole.
One would expect different blockchains to be capable of communicating with one another. After all, they all have the same core principles, despite different implementations and features. Unfortunately, things are never as straightforward in that industry. Blockchains cannot look outside of their own network by default, unless the developers build a solution to do so.
As a result, there are several projects underway to allow this direct line of communication. None of these solutions are native to one specific chain at this time. Interestingly enough, the majority of the projects look to bridge a chain of their choice to Ethereum. Given all of the tokens issued as separate ecosystems running on top of Ethereum, that makes some sense.
The Syscoin Bridge
Thousands of alternative cryptocurrency projects have been created over the years. Most of these ventures peter out in quick succession. Syscoin is a notable exception, even though it has never been on most people’s minds. The team is not about hype or speculation, but rather dedicate themselves to building actual solutions for the cryptocurrency industry.
Syscoin Bridge is one of those ventures that can usher in a new era for the industry as a whole. It is designed to bridge the gap between the Syscoin and Ethereum blockchain. Over a year of research and development has gone into this venture. It is currently available in a test version. It will take at least a few more months until it is production-ready.
This entire project is decentralized and trustless. Its users will be able to move funds from one chain to the other without having to rely on external parties. Having the ability to convert between SYS and ETH is already in place across some of the industry’s trading platforms. However, that approach requires trusting the exchange in question.
An added bonus to bridging the gap between Syscoin and Ethereum is how the first ecosystem’s users will gain access to Ethereum’s smart contract capabilities. Secondly, this solution also benefits Ethereum’s need for a viable scaling solution, particularly where the ERC-20 token ecosystem is concerned.
The Technical Specifications
By default, it is impossible to allow for token fungibility on both blockchains at once. The Syscoin team solves this problem by utilizing zero-knowledge proofs. It is a well-respected technology in the cryptographic industry.
In a nutshell, a zero-knowledge proof allows user A to prove they know the value X to user B. All of this is done without revealing any additional information, such as user A ‘s or user B’s total holdings of either SYS or ETH at that time.
What makes the Syscoin Bridge appealing is how it doesn’t require counter-parties nor incentivized custodial holders. Instead, all transactions are done between the end users directly. This also means there will be no extra fees for performing swaps of value across both blockchains, other than the regular transaction fees required by the respective networks.
Users interested in accessing the Syscoin bridge can do so through this website. It is expected this dApp will undergo some big changes over the coming months. Users can also request Syscoin testnet funds – as well as mainnet funds – from the faucet set up specifically for this purpose.