An Introduction to Quantum
Summary
- Birthday Research has launched Quantum, a blockchain bridge which has the following properties:
- Trusted and bi-directional
- Seamless transfers between DeFiChain and Ethereum
- Preliminary support for four ERC-20 tokens - Quantum is instrumental in connecting DeFiChain to other blockchain networks
- Transact on Quantum for a chance to participate in an upcoming campaign
Introduction
Bridges have connected the world for millennia and continue to do so today, even in the world of crypto. Blockchain bridges forge crucial links between blockchain networks, which are traditionally siloed and operate in isolation from each other.
Birthday Research is driven by the mission to develop best-in-class blockchain innovations across various ecosystems such as Bitcoin, Ethereum, and DeFiChain. This is achieved through rigorous open-source blockchain research and development, which also enables the team to solve problems across these ecosystems. One such problem is the difficulty of accessing some blockchain ecosystems — with a bridge in the picture, it can potentially be eliminated.
That’s why Birthday Research has built Quantum, a trusted bi-directional bridge that directly connects DeFiChain (DFI) and Ethereum (ETH). To use Quantum and access DeFiChain, all you need are some ERC-20 tokens (more on the specific ones later), and you’re good to go.
In this article, we introduce you to Quantum and walk you through how it facilitates secure and transparent transactions between ERC-20 tokens and dTokens. Below is an overview of what will be covered:
- What are blockchain bridges?
- Introducing Quantum
- Components of Quantum
- How does Quantum work?
- Why is Quantum so important?
- Get started with Quantum
What are blockchain bridges?
Before diving into the mechanics of Quantum, let’s go over the basics of what blockchain bridges are. In essence, blockchain bridges are protocols that connect two or more blockchains, allowing users to transfer assets across different networks.
With blockchains traditionally isolated from each other, bridges play the vital role of linking them together to promote interoperability and innovation.
Blockchain bridges serve as a seamless alternative to the traditional route of token swapping, enabling you to lock your original assets and utilize their wrapped versions in your destination chain. They also provide you with easy entry and exit paths from each chain.
To learn more about blockchain bridges and how they facilitate cross-chain transfers of assets, head over to this blog on blockchain bridges.
Introducing Quantum
Now that you’re armed with a fundamental understanding of what blockchain bridges are, let’s walk through how Quantum works.
Just like how many parts work in tandem to keep physical bridges stable in the real world, Quantum is similarly a multi-faceted system where every component contributes to its overall operation.
Quantum serves as the route through which compatible ERC20 tokens and dTokens are swapped from one to the other. At present, Quantum provides support for these ERC20 tokens:
- ETH
- WBTC
- USDT
- USDC
Support will be provided for more tokens in time, so be sure to follow @BirthdayDev to get the latest updates!
Components of Quantum
The components that make up Quantum are as follows:
Token and Asset Selection: This function enables you to choose which assets (ERC20 tokens) you wish to lock in exchange for corresponding dTokens.
Deposit and Withdraw Mechanism: This mechanism lets you choose between two options on what to do with the assets you place on the bridge, depending on your source chain:
- Deposit ERC20 tokens and receive corresponding dTokens if you’re looking to enter the DFC ecosystem from Ethereum.
- Withdraw ERC20 tokens in exchange for your dTokens if you’re moving from DeFiChain to Ethereum.
Fees and Liquidity: Transparency is top of the line on our list of priorities, and that’s why fees and liquidity are fully disclosed before you perform any transaction on the bridge.
Security Protocol: This refers to the series of robust smart contracts that have been designed to consider possible angles from which bridge attacks may be launched.
Relaying: This is handled by a server that monitors the history of the existing EVM layer before verifying and executing the necessary bridging operations on DeFiChain.
How does Quantum work?
With an understanding of how Quantum works, you may now begin your journey across the bridge.
Let’s say you have 20 ETH on hand and wish to swap these into dTokens to gain access to DeFiChain. This is where Quantum comes in. At Quantum, you will lock in your 20 ETH and receive the corresponding dETH with no KYC required. Once your transaction is complete, you will receive the dETH in your designated DeFiChain wallet. Alternatively, if you’re looking to move from dETH to ETH, you may do so by depositing your dTokens on Quantum to claim the corresponding number of ERC20 tokens.
The entire process is designed to be fully transparent, affording you maximum visibility over the overall liquidity pool for each token pair before you initiate your transaction. Transaction fees are also displayed upfront, with no hidden charges levied on the swap.
Why is Quantum so important?
Simply because it enables DeFiChain to be connected to other blockchain networks in the crypto ecosystem, starting with Ethereum. Although DeFiChain has a strong and loyal community, they are unfortunately sequestered from other active blockchain communities due to the absence of cross-chain interoperability.
DeFiChain was forked off Bitcoin. Although it offers speed and security to the community, it remains siloed from the wider DeFi ecosystem where Ethereum remains the most popular blockchain. This has culminated in a glass ceiling on DeFiChain’s inflow of new entrants and funds.
Quantum works to resolve these problems. By providing improved accessibility to dTokens and the DFI ecosystem, Quantum significantly lowers barriers to entry for new users and connects the existing DeFiChain community to the rest of the DeFi ecosystem.
Get started with Quantum
Ready to cross Quantum? You’re in luck!
After the launch of Quantum (end of February towards early March — very soon!), a campaign will be held. Details of this campaign will be announced shortly.
Have any questions or feedback on Quantum? Or are there any tokens and chains you’d like to see Quantum support? We’d love to hear from you! Get in touch with the Birthday Research Product team here.
About Birthday Research
Birthday Research is the blockchain R&D arm of Cake DeFi that develops best-in-class blockchain innovations, with the mission of enabling the next bound of Web3 through open-source blockchain research and development.
Birthday Research’s work spans cryptographic research, deep blockchain consensus development, and smart contracts development — with a laser-sharp focus on pushing the industry frontier while tackling the most demanding DeFi challenges of today.
