The long-awaited Syscoin Ethereum bridge has officially launched. Rather than compromising on centralization, this service highlights the proper potential of decentralized approaches. Achieving interoperability between different services requires a different way of thinking.
The Syscoin Ethereum Bridge is Powerful
To most people, bridging the gap between different currencies is something exchanges allow for. After all, one can exchange value in Bitcoin to any altcoin, stablecoin, or fiat currencies. The trading of cryptocurrencies is very different from achieving an interoperable system between blockchains, however.
Atomic swaps, and even submarine swaps, are a better example to merely exchange value. In most cases, they do not require the use of a centralized authority. Platforms facilitating such transactions will still be centralized, however. A true decentralized solutions requires two – or multiple – working blockchains and nothing else.
The Syscoin Ethereum Bridge is a very different creature. It goes well beyond merely the exchange of value between the Syscoin blockchain and Ethereum’s ecosystem. While that is a part of what can be achieved, looking at the much bigger picture is crucial. It is safe to say that this is a groundbreaking development. One that has the potential to shake the cryptocurrency and blockchain industry to its core.
Adopting Syscoin’s Benefits
Very few people seem to be aware of what the Syscoin ecosystem has to offer. It is not merely another altcoin trying to enrich its developers. Nor is it a quick pump-and-dump scheme. This ecosystem has been around for multiple years, and ages like a good wine.
By utilizing the Syscoin Ethereum bridge, ERC20 tokens inherit a lot of features. Those include onchain settlement of near-instant payment, far fewer scalability concerns, cross-chain fungibility and fractional supply, and much more. The decentralization aspect for Ethereum DeFi platform users is another core aspect to keep an eye on.
Those familiar with Syscoin know about merged mining. The strength of SYS and BTC merged mining can be leveraged by ERC20 tokens through this interoperable solution. On paper, one would think that to be completely impossible, for a wide variety of reasons. In reality, it is possible as of right now.
Syscoin’s Tokens Benefit too
While not as commonly used to create new tokens, Syscoin has this option built in. Tokens issued on this blockchain will inherit the utility of Ethereum. Turning-complete smart contracts, hardware wallet support, DEX opportunities, and DeFi solutions are just some examples. There are so many benefits to bridging the gap between different ecosystems without settling for centralization.
One such implementation already exists. Known as SYSX, it is an ERC-20 instance of the Syscoin Ethereum Bridge. The smart contract has been open sourced for anyone to view. It is now up to developers to make the most of this new technology at their disposal.
Burning and Minting
The Syscoin Ethereum bridge puts a different spin on burning and minting. Under normal circumstances, a token burn reduces the supply. However, this interoperable system allows for a different approach altogether.
It is possible to burn tokens on one chain and mint them on the other. This is achieved through a Syscoin Platform Token, or SPT. As such, ERC-20 tokens can migrate to Syscoin’s blockchains and vice versa. It is a way to experiment with different solutions and opportunities across the board.
All of this and more is explained in detail here.