Home News Allbridge to become the first token bridge for the Stacks token

Allbridge to become the first token bridge for the Stacks token

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Token bridge for several chains Because of a collaboration with Bitcoin software developer Daemon Technologies, Allbridge will be the first to enable Stacks (STX) transfers.

The Stacks Layer-1 blockchain resolves transactions on the Bitcoin (BTC) network, and STX is the native token for it. It is currently worth $1.7 billion on the stock market. Allbridge presently supports 12 different blockchains, including Ethereum, Ethereum-compatible sidechains, Solana, Terra, and others.

A token bridge enables the movement of cryptocurrency from one blockchain to another. Transfers between Stacks and Allbridge chains will be possible because of the new bridge.

In the second quarter of 2022, the Stacks Bridge will be operational. It will initially only handle STX transactions, but other Stacks protocol SIP010 tokens, such as ALEX and the USDA stablecoin, expected to join in the future. NFT transfers between chains also taken into consideration.

Andriy Velykyv, co-founder of Allbridge, said the alliance will assist meet the crypto community’s need for access to the Bitcoin ecosystem in a statement released on February 10.

“By building a bridge that allows consumers to engage with Bitcoin-powered applications, we’ll be able to streamline operations that were previously constrained to a single chain and ecosystem.”

Stacks Bridge will enable users to come and use the assets within the network

Allbridge will get a $140,000 grant from Daemon Technologies to assist with the bridge’s expansion. Stacks Bridge will “enable users to come and use the assets within the network for whatever the use case is,” according to Xan Ditkoff, founder of Daemon Technologies.

Ditkoff demonstrated how Stacks uses the Bitcoin network’s security for transaction settlement while also using secondary blockchains for faster throughput. “It’s beneficial for folks who wish to transact on quicker networks first, then move their money to Bitcoin for security,” he said.

This month has been all about the security of token bridges. Three token bridge smart contract hacks have occurred within the last two weeks. On Feb. 3, a fault in Wormhole’s smart contracts on Solana exploited, resulting in an inorganic surplus of tokens on the blockchain, generating $321 million in wETH.

Concerns about the Allbridge token bridge’s security dismissed by Ditkoff. “We have a great deal of faith in the Allbridge team,” he stated.

“It’s easy to overlook how modern these bridges are. How long has Solana’s virtual machine been in use? Everything is still on the verge of collapsing.”

Basic security restrictions of bridges exist

In an early January Reddit post, Ethereum developer Vitalik Buterin issued an eerily prescient warning to the crypto community. Stating that “basic security restrictions of bridges” exist.

“I have a hard time seeing a future where bridges aren’t a large part of the ecosystem,” Ditkoff said in response to Vitalik’s claim.

“The reasoning behind Vitalik’s remarks is that everything converges on a single chain. That is optimised for the one thing that (Proof-of-Work) was designed for byzantine fault tolerance. Whether one chain eventually dominates will be determined by whether Bitcoin does this better than anything else in human history.”

Crypto investment platform Stacked raised $35M

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