There appears to be some excitement regarding Wormhole, a new decentralized bridge. It is not too different from the Syscoin bridge, as it provides a gateway to Ethereum. This technology will primarily impact the Solana network, as well as the FTX platform.
Not Your Average Wormhole
Bringing Ethereum liquidity to the Solana ecosystem currently requires moving through the FTX platform.
It is a convenient solution, but one that can be simplified even further.
Wormhole is designed to do exactly that, as it removes the need to route through FTX altogether.
Instead, the Wormhole decentralized bridge is a direct gateway between Ethereum liquidity and Solana.
Users can transfer their wealth between blockchains.
This includes converting ERC-20 liquidity into SPL liquidity in one swoop.
Wormhole has yet to be audited, yet it appears Kudelski Group is nearing completion of this process.
An official release of the audit should be publicly available in the coming weeks.
For developers, a beta version of this decentralized bridge will be made available on October 28, 2020.
For the DeFi space, this new decentralized bridge can offer a fair few benefits as well.
Solana provides high speed, low costs, and settlement on another base chain through Wormhole.
For DeFi applications that are serious about decentralization, solutions like this one cannot be overlooked.
It is unclear if this bridge will be extended to other protocols. For now, Ethereum is the most popular layer for DeF.
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