We have implemented crosschain bridges for SGO to ETH and 4 other blockchains (NERVE, NULS, HECO, OEC) !!
Another amazing step forward for Sportemon go, bridging to ETH, along with OEC, NULS, NERVE & HECO via the Nerve Network greatly increases the various possibilities and options of where and how SGO can be purchased. On our mission to capture the 99% audience outside of crypto this is a vital step to facilitate for real world use cases of the SGO token.
We approached one of our developers who made this possible to better explain what this means and to cover the technical side of things.
What is a Bridge?
What bridges accomplish is it allows a User to move from 1 type of block chain to another. Therefore enjoying the benefits of what the other has to offer. This is known as Cross chain which allows for Interoperability.
For example:
Driving along on Highway 95 in Jersey City, NJ but you really want to go to Time Square in NYC to see all the sites. Swimming in the dirty cold Hudson River is not option and you don’t have a boat. So, you would cross the George Washington Bridge. Same applies in the crypto world.
Going to another Blockchain such as ETH
BSC side
The user begins with a device that has a bridge interface or platform. Then a wallet is connected. A receiver address on the ETH network is used with a specified amount of SGO to send.
A user has a token on BSC and you can move from there and participate with DEFI and in other smart chains. SGO started with 5 bridges: ETH, OEC, HECO (Huobi), NERVE and NULS and in the coming months will partner with other network to introduce new bridges.
Vault
The User selects which cross chain they want to move SGO tokens to. From this point what takes place during the Cross chain is the users tokens are locked up in the vault and the DAP or decentralized application recognizes this.
ETH side
The User is minted (or created automatically) an equally amount which results as a peg-in event. The token symbol would now be pSGO which is called provable SGO. If a token has a smart contract with a tax as part of their tokenomics then upon any buy or sell transaction of pSGO taking place all SGO token holders will receive their reflections ( just like on the BSC side).
Returning to BSC from ETH
There are minting and destroying functions involved with cross chain functions. When the User wants to leave the ETH network and return to the BSC side then the same thing takes place but instead of minting the tokens they are destroyed (burned) on the ETH side.
Example:
Say the User has a bunch of ETH and our bridges are accessible & SGO has pairs on Uniswap. So you would take your ETH and go to Uniswap to make a swap. You swap for pSGO or provable SGO on ETH. You then take that pSGO and return back over the bridge and receive your actually SGO. These provable tokens serve as a replicated fill in or stable version of SGO. They are not pegged to the dollar as a 1 to 1 but 1 to 1 with SGO tokens on BSC side.
Vault
From the destroying taking place the vault places the same amount of SGO into a buffer.
BSC side
The User will receive from the buffer that exists inside the vault on BSC side SGO tokens.
The only minting and burning that takes place is on the ETH side. The thing to remember is what you put in is what is minted and what you take out is what is destroyed or burned on ETH. So there’s no adding to the supply, no subtracting to the supply, the supply remains perfectly the same. This enables new functionality across the bridge or across all chains.
So when the User leaves BSC and they are trying to go to ETH those tokens are locked in a vault. Those are not burned but they are removed from the BSC circulating supply. On ETH they are minted equal to the amount that was locked up. When you go to leave ETH and come back to BSC depending on the amount of provable SGO that you have you return with it and you receive only the amount of the wrapped token that you have at the time. So that’s pretty much how that happens.
For the User, the end result for the tokens are the same. No difference. The transaction sent gives the User exactly the same type and amount of SGO product on the other side of the bridge. Literally the same but in ETH form. This operation works identical across all bridges associated with SGO. Every time the User makes a transaction across the bridge to another chain the reflections are updated, the balances are updated, but no more than what you started with. When you return, you can keep those and reflections continue as normal so in the end tokenomics are maintained.
SGO can only grow to that of the BSC ecosystem. Which means SGO is strapped. With big goals and ambitions to be everywhere SGO came up with a solution with the help of a few networking partners — BRIDGES.
What benefits do the SGO users on receive? Going to the ETH network the user can access other DAPs, NFTS, exchanges, Dao platforms, financial applications, plus all the other participating coins and tokens but one of the most important is UNISWAP. For the other 4, OKEX | HECO | NERVE | NULS, bridges they each have their own unique specialty.
These bridges open the door to explore new opportunities across their ecosystems. There is only so far SGO can go on the current network. SGO can only grow to be so large and by expanding the product were able to tap into these other markets through cross chain bridges. This means new people, new ideas, new opportunities, new hopes, and new growth. That is probably most important for SGO’s future.
BSC has a very valid role in the value of SGO as does BTC. It is one giant market ecosystem but as far as slowing and lowering the impact of whale movements or a crypto recession, building bridges via cross chain to other blockchains for usability of other ecosystems and networks is a step of many to help limit third-party risk. By doing so in a means that way SGO could survive any number of mini recessions. This is a very healthy step for SGO to remain active in the ecosystem and with anyone that pairs with SGO.
The dev has explained a lot of information taking it from very techie wording to more lamens terms and dumbed down for the many of us to understand. In the end, SGO through the many current bridges and others to follow will increase interoperability and scalability.
Nerve Network is a decentralized digital asset service network based on the NULS micro-services framework, which uses the NULS ChainBox to develop a blockchain cross-chain interaction protocol. The aim is to break the isolated blockchain value and establish a cross-chain asset exchange network to provide all the necessary underlying support for the Defi application ecosystem. Let every digital asset holder experiences a truly secure, free and transparent Defi application service.
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