New cross-blockchain bridge to allow ERC-20 tokens to exist natively on Dfinity network.
Developers of a new blockchain bridge reveal that the Dfinity network will now allow Ethereum or ERC-20 to be available through a cross-blockchain bridge. Funded by az16 and Polychain capital, the Dfinity network is responsible for carrying out the development and promotion of decentralized network architecture for blockchain.
What can be expected?
Quoted by the web development studio of Terabethia, the blockchain will gain immensely with this integration and benefit the E2 blockchain in the long term. The bridge will help in increasing the relevance and the usage of Ethereum as layer 2 and will enhance the interoperability. A multitude of functions like transferring funds across, mirroring assets, and enabling cross-chain contract communication can be done natively. Named Terabithia, the bridge will allow sharing of tokens, contracts, and data through the internet computer and vice versa.
It will also enable the Internet Computer network to hold Ethereum assets, allowing them to be available natively without any direct existence on the network. The portability through cross-blockchain bridging will penetrate liquidity through NFTs or non-fungible tokens and decentralized finance or DeFi. By giving a boost to liquidity, DeFi makes use of smart contracts for borrowing, lending, and trading to users on the network.
According to the founder of the Dfinity network, the bridge will also address scaling challenges, keeping a strict check on security and native existence issues. Further, he adds that the architecture of the Dfinity network and Ethereum might be built on different fundamentals, however, the merger will amplify the capability of cross-chain architecture.