THORChain
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THORChain

The Bifröst Protocol: Bridging Chains Safely

How THORChain’s Bifröst Protocol Bridges the Blockchain Gap

The Details

Merging multi-signature (multi-sig) account security, proof-of-stake (PoS) cryptoeconomic schemas and continuous liquidity pools (CLPs), Bifröst is an interoperable cross-chain bridge enabling compatibility with nearly all major unspent transaction outputs (UXTOs) and account-based assets, including code-forks and tokens. Put more simply, Bifröst is the glue that holds the entire THORChain ecosystem together, enabling the seamless trading of any digital asset across any distributed ledger.

  • Proof of Stake — A cryptoeconomic model that entrusts network mining power to participants based on how many tokens they have staked in the network.
  • Continuous Liquidity Pool (CLP)— The protocol deploys liquidity by incentivizing any THORChain participant to supply liquidity in exchange for fees. This means traders will exchange assets directly with the protocol, ensuring continuous liquidity. Since the protocol also tracks the ratio of RUNE (the THORChain protocol token) to the asset in the CLP, they also inherit a trustless on-chain price feed for digital assets

Battle of the Blockchains

While Bifröst is not the first cross-chain solution, it could be the most evolved. In fact, THORChain’s protocol improves upon the weakness of preceding cross-chain architectures like Rootstock 2WP, Liquid Sidechain, POA Network Bridge and COSMOS Peg Zone.

Bridging THORChain to Ethereum

In order to build a Bifröst bridge to the Ethereum blockchain, THORChain’s validators must vote in the new connective structure via the mainnet’s governance protocol. Validators must achieve 67-percent majority consensus to proceed with the new bridge.

  1. THORChain’s public ledger will emit the current location of all Ethereum bridges (multi-sig addresses).
  2. Any trader can then send across Ether to THORChain, by choosing a bridge that meets their requirements, or making their own private bridge. Bridges can be accessed inside of wallets, exchanges or directly via the ledger.
  3. The protocol credits their THORChain address with a corresponding amount of fungible Ether.
  4. The trader can then trade freely on THORChain using their assets.

Other Bridges

Other bridges can be built in a very similar manner, requiring no change to protocols, such as Bitcoin, Monero and Litecoin.

Conclusion

THORChain’s cross-chain compatibility is fundamental to being a true decentralised exchange protocol and is built to be compatible with all major chains from start.

Join the Distribution

For more information or to participate in the distribution, head on over to https://thorchain.org/token.

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THORChain

The official team for THORChain — the decentralized liquidity network.