Elrond And Binance Smart Chain Integration To Enable Strategic DeFi Interoperability
The opportunity of an interoperable DeFi ecosystem is far greater than the sum of separate individual parts. Specific opportunities enabled by the unique capabilities of distinct blockchains are amplified by the seamless flow of value and global user accessibility.
We are therefore excited to announce that the Elrond Network will be interoperable with the Binance Smart Chain. This will allow the free flow of assets issued on one chain to participate in DeFi opportunities on the other chain.
By wrapping eGold and other Elrond native assets as BEP20 tokens on the Binance Smart Chain, or by wrapping BEP20 tokens on the Elrond Network as ESDT tokens, standalone DeFi products on either chain will gain exposure to the combined total value of assets from both ecosystems.
“The integration with the Binance Smart Chain is meant to significantly increase exposure, accessibility, and value flow between the networks, enabling many creative opportunities for the DeFi ecosystem.” said Beniamin Mincu, Elrond CEO.
The Binance Smart Chain is a smart contracts execution platform that is complementary to the Binance Chain. This dual-chain architecture will enable developers to build Ethereum compatible decentralized apps and digital assets on one blockchain and take advantage of fast transfers on the other.
The first step of the integration has already been made. eGold can be withdrawn from the Binance CEX as BEP20 EGLD tokens on the Binance Smart Chain. The ongoing collaboration is now focused on enabling the transfer of tokens in a direct manner via a bridge.
The interoperability with BSC adds utility to the eGold token ecosystem by expanding the available use-cases to include DeFi products on the Binance Smart Chain. Furthermore, BSC assets participating in DeFi opportunities on the Elrond Network will contribute to further increasing the number of transactions on our blockchain.
Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About Binance Smart Chain
Binance Smart Chain is a sovereign smart contract blockchain delivering Ethereum Virtual Machine (EVM) compatible programmability. Designed to run in parallel with Binance Chain, Binance Smart Chain retains the former’s fast execution times and low transaction fees while adding Smart Contracts functionality to support compatible DApps.