We like Wanchain’s mission here at Altcoin Buzz. And that’s because they are all about interoperability. They want to make working across many chains as easy as possible. And if you believe the future is multi-chain like we do, then you want interoperability to improve too.
So in that vein, Wanchain announces its newest partnership. This time they are working with the most popular Layer 2 solution, Polygon.
What The New Bridge Will Do
Wanchain will create decentralized bridges between Polygon and Arbitrum. This Layer 2 to Layer 2 bridge will keep Polygon’s place as the #1 Ethereum scaling solution. Polygon also expects this bridge will improve liquidity on both sides. And possibly, in the ETH ecosytem overall.
The partnership will also be the first time that decentralized liquidity pools (LP) are the source of a cross-chain solution. Many cross-chain options like Wrapped Bitcoin, for example, are centralized with a custodian. WBTC uses Bitgo to custody the Bitcoin that’s then wrapped as a ERC-20 token.
Instead of the standard method of:
for moving across chains that Wanchain helped to standardize, this method is different. With a decentralized LP, like with DeFi, a pool is available with a base of assets in it. You are not locking your tokens to mint new ones like in the old model. In this case, the LPs have assets that you can trace with a contract address like on any DeFi app. Then, you can take the assets already in there to bridge across to the other chain.
This could become the new standard for bridging between blockchains.
More About Wanchain
Wanchain already has cross-chain relationships with:
- Binance Smart Chain,
- XRP Ledger,
- and Polkadot.
Adding Polygon maintains its place as the #1 cross-chain solution. This includes connecting Layer 1 or Layer 2 blockchains.
In an Altcoin Buzz exclusive, Li Ni, VP of Business Development and Operations at Wanchain told us
‘There will come a time when huge swaths of the blockchain industry will run on crosschain commands. Undoubtedly, the term blockchain will assume interoperability. This is the future that we envision at Wanchain, and this is future we are planning for. These new Layer 2-to-Layer 2 bridges, powered by decentralised liquidity pools, are an important step in that direction.’
Wanchain and Polygon Price Activity
Prior to the news coming out, $WAN traded at $0.73 up 10% in the last 24 hours, and has a market cap of $142 million. $MATIC (Polygon) is trading at $2.36 up 33% in the last 24 hours and has a market cap of $16.2 billion, courtesy of our friends at Coingecko.
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