The beauty of cross-chain | Bifrost Great Bay Area International Blockchain Roundtable
Polkadot Ecoproject Roundtable-The beauty of cross-chain
On the morning of August 6, 2020 Great Bay Area International Blockchain Week was held by Cointelegraph CN. Bifrost co-founder Lurpis and Darwinia, ChainX and Crust from Polkadot ecology shared the development of the project and new expectations for Polkadot ecology in the roundtable theme forum of “Pokadot Ecological Roundtable- The beauty of cross-chain”. The following is a roundtable sharing content.
Please use 1min to briefly introduce what the project does?
Bifrost is a cross-chain network that provides liquidity for staking. It is positioned as the basic DeFi protocol in the Polkadot ecosystem. Users who have done staking know that while obtaining staking rewards, your Token is locked. In the market, the opportunity cost of participating in staking is very high, and we allow you to participate in transactions while obtaining the rewards of staking, reducing the opportunity cost of participating in staking, and at the same time increasing the overall staking rate of the PoS public chain.
A parachain designed to provide liquidity for staking, what users care most about is rewards and liquidity. How does Bifrost achieve both? In addition to allowing users to staking without lock-up, what other problems have been solved?
For users, using Bifrost is actually very simple. You can convert your PoS Token into Bifrost vToken to get staking reward and liquidity, but behind the seemingly simple operation, a complex mechanism is needed to solve all kinds of problems. Problems can achieve a good user experience, such as how to guarantee the decentralization of voting rights, how to provide higher staking reward, and how to provide vToken liquidity.
Let me take two aspects of higher staking reward and liquidity provision. For staking reward, Bifrost has a voting bidding function, which means that nodes with bidding rights can get Bifrost by paying a higher amount. The premium of Bifrost will also be issued to users as staking proceeds, so the staking completed by Bifrost convert vToken may even be higher than the highest yield of the original chain. Regarding liquidity, we currently have a multi-currency liquidity trading pool designed based on the Balancer algorithm. Market makers who provide liquidity in this pool can not only get a share of transaction fees, but also have opportunities for arbitrage of Staking rewards. At the same time, the settlement feature of vToken allows it to be compatible with centralized and decentralized transaction scenarios without additional development.
Users don’t need to worry about the problem of not getting staking reward by depositing their Token to the exchange. Of course, both reward and liquidity are the most basic functions we provide to users. Behind this, there are several problems that need to be solved urgently in the market to promote Bifrost’s progress, such as Staking and DeFi after ETH becomes 2.0 The problem of competing for users, the problem of liquidity and security trade-offs in PoS networks, and so on.
After three years of research and development, the Polkadot mainnet is also being launched in phases. The DOT transfer function will be activated on the 18th of this month. Why did you choose Polkadot for the Polkadot ecological project? What is the final vision of your respective projects? After Polkadot’s mainnet actually launches transfers, will you have any new plans?
At the beginning, we chose Polkadot because we have received restrictions on our smart contract business. On the one hand, there is no way to expand to multiple chains. On the other hand, there is no way to achieve complete decentralization. Part of the business is still completed through scripts under the chain. Before Polkadot, we also compared Cosmos. In the end, because of its lower development cost and security, we chose Polkadot.
Our vision is to provide staking liquidity for 80% of the POS public chain, making it easier for users to participate in the staking of the public chain. While users gain liquidity, they also increase the amount of staking and security of the original chain. Why not do it. Speaking of the transfer that will be opened on the 18th, I am really looking forward to it. On the one hand, it may be because I have also invested a lot of Dot. On the other hand, it is because after the opening of the transfer, the parachain bidding is not far away.
In terms of plans, we will conduct Bifrost’s parachain crowdfunding before the parachain is launched to complete the Polkadot parachain auction. At the same time, we are also planning a Staking Drop event, which is expected to support DOT, KSM, ETH 2.0, EOS, etc. Currency, let users with staking needs experience Bifrost’s functions in advance, so everyone can keep paying attention.
Polkadot is known as the “king of cross-chain”, but community members will also think that Polkadot is more like Ethereum, which has developed Sharding technology to the extreme. What do you think of this statement?
I don’t agree with this statement. From a purely technical point of view, comparing Polkadot and Ethereum directly is inherently problematic. Ethereum should be just a Runtime module with smart contract functions on Polkadot, and Polkadot’s underlying Substrate The framework can do most of the business functions you can imagine. The gap between a smart contract bound by the underlying protocol and a completely self-defined chain is still very large. Sharding technology can indeed solve the current resource competition on the chain. Problem, but it cannot solve the problem of business architecture.
At present, the biggest difference between Polkadot and Ethereum is the difference in business architecture. Smart contracts can complete part of the key business, but the business type carrying capacity is limited, and many scenarios cannot be realized by smart contracts alone, but Polkadot can, with the help of the Substrate framework, to complete the development of a chain at low cost.
But I don’t agree with the statement of one-click token launching or one-click chain launching. The threshold for token or chain launching has been reduced to a very low level, but to make the coins valuable, one-click issuance of coins or a chain There is no real value, and the higher valuation of the project is supported by the actual business behind it. How to make the business use the advantages of blockchain and run decentralized is the real challenge.
From Bitcoin to Ethereum to Polkadot, they are all part of Web3’s vision of a freer, more open, safer, and fairer next-generation Internet. What are your expectations for Polkadot’s future prospects?
To promote the development of Web3.0, it is also important to build the infrastructure. In fact, I understand that Web3.0 is not the relationship between the new and the old by Web2.0, but the relationship of parallel development. With the improvement of the blockchain infrastructure, Web2.0 and Web3.0 will continue to converge. Where there is a need to trust, use Web3.0 to solve it, and where efficiency and high frequency are needed, continue to optimize the centralized method of Web2.0, and finally realize the vision of Web3.0, LESS TRUST, MORE TRUTH. Based on this, a scalable, flexible, and fast iterable infrastructure is needed to cooperate. I think Polkadot meets these conditions and is sufficient to carry the integration and transformation of Web2.0 to Web3.0. Looking forward to Web3.0 Enter everyone’s life more gently. At present, the various projects of Polkadot are promoting this day faster from their respective areas of expertise.