DeFi (Decentralized Finance) is the answer to decades of financial oppression committed by banks and other self-proclaimed upholders of the fabric of commerce. This burgeoning ecosystem’s impact is so profound that the entire DeFi protocols market has undergone a near 80x growth in the last year.
New and improved lending, asset management, or DEX protocols show up, opening new frontiers for more and more people to expose themselves to various financial instruments. However, mainstream DeFi adoption still stands to face a significant roadblock. Why?
Because different blockchain networks operate within their infrastructure and not in conjunction with other distributed ecosystems, as a consequence, there is a severe shortage of cross-chain blockchain interoperability. Therefore, the DeFi space cannot receive a substantial infusion of liquidity for multi-dimensional growth.
Enter pNetwork-Powered Bridges
A brainchild of the blockchain oracle service provider Provable Things, pNetwork has been designed with the sole purpose of allowing blockchains to “communicate” with each other. The protocol hosts a DAO (Decentralized Autonomous Organization), the PNT governance token, and the pTokens synthetic crypto token minting technology.
Out of the three, pTokens is at the core of the pNetwork operational infrastructure. It solves the “interoperability dilemma” through a secure and robust system (or bridges) promoting cross-chain composability and makes it super easy to transfer tokens across all blockchains.
The DeFi space needs a substantial liquidity injection for widespread growth, as mentioned above. The pTokens system bridges multiple blockchains so that users can access liquidity from across a plethora of crypto networks to power dApps. Isn’t that amazing?
What’s even more remarkable about these cross-chain bridges is that they can build in either direction. A network of pNetwork node operators verifies cross-chain asset transfers and guarantees the 1:1 peg-in and peg-out of the assets undergoing transfers (BTC, ETH, BSC, EOS, etc.).
In case you didn’t follow, pTokens’ peg-in and peg-out feature is pNetwork’s superpower, which makes interoperability between different chains possible. Here’s a little primer.
When you want to redeem them back, revisit dapp.ptokens.io to return the pEOS tokens. They will be burned, after which you can collect your original EOS holdings back.
Why Build Bridges Between Blockchains at All?
In the last couple of months, the DeFi ecosystem growth has moved from Ethereum to BSC. Ethereum Layer 2 solutions like Polygon are also witnessing a surge in new dApps. But with the proliferation of DeFi apps on these blockchains their “inter-accessibility” still remains a bone of contention.
Technically sustainable cross-chain blockchain bridges can enhance the usability of dApps and crypto assets native to these smart-contract supporting blockchains. With pNetwork, crypto assets belonging to non-Ethereum platforms such BSC can be used simultaneously on different blockchain networks in their synthetic form. By minting a token equivalent in value, users can put their crypto holdings to work without foregoing their properties and value.
And to help achieve pervasive cross-chain composability, we have Eidoo on our side. Our teams set the gold standard for cross-chain communication and interoperability by building efficient bridges connecting different blockchains to boost mass adoption.
Cross-Chain Bridges Will Become a Key Blockchain Feature, and That’s Because…
Excruciatingly long waiting times and exorbitant conversion fees are painful to bear. With an interoperable ecosystem built on the foundation of cross-chain bridges, users can dive into different blockchain networks without waiting at all!
Multi-chain bridges can amplify the blockchain usage experience by letting users interact with various protocols (DeFi and non-DeFi) on different blockchains. This, in turn, will pave the way for increased token volume across all of these protocols, increased value for these protocols, increased liquidity infusion across various liquidity pools.
All of this combined with greater access to the entire protocol ecosystem, thereby enabling wider cryptocurrencies and blockchain adoption.
🔗 For any blockchain project looking to integrate pTokens into their infrastructure, we have also built a pTokens JS library.
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