Elrond Interoperability with Ethereum & Compatible Chains via xDAI Token Bridge
We’re excited to announce our partnership with the xDAI Stable Chain to make their Arbitrary Message Bridge compatible with Elrond. This integration will enable token transfers between the Elrond mainnet and Ethereum compatible chains, as well as smart contract calls between the different chains.
The collaboration will focus on adapting the existing message bridge implementation to support Elrond’s virtual machine, in addition to the Ethereum VM. These research and development activities will finally make our mainnet compatible with AMB and enable token transfers between Elrond and Ethereum, as well as other functionalities.
“The +$4bn in DeFi assets today are just the beginning of the significant change coming to the global financial system. DeFi growth will rapidly accelerate with the scalable and inexpensive features provided by the Elrond mainnet. Our work with xDAI will help bring liquidity & performance together.” said Beniamin Mincu, Elrond CEO.
The xDai Foundation team has developed token bridges between Ethereum and the xDAI chain which have been in production since 2018. They have recently expanded their Arbitrary Message Bridge to work between any chains that use the Ethereum Virtual Machine. Current implementations allow tokens on one chain to be wrapped on another, to serve as #DeFi collateral, for example.
The bridge can accommodate scenarios such as ERC or NFT token transfers, using a smart contract on one chain to invoke a method on the other connected chain, or even synchronizing smart contract state between chains.
“Elrond’s VM is based on Wasm, like the future Eth 2.0 eWasm VM. This integration is therefore a synergy with our project’s future plans. I’m excited about getting to work with the Elrond tech & toolset.” said Igor Barinov, xDAI Founder & Lead Developer.
Making the xDAI Arbitrary Message Bridge compatible with Elrond will enable using eGLD in ETH-based #DeFi contracts or porting over stable coins from Ethereum onto our mainnet, preserving their value but making them transferable at much higher speeds & lower fees.
Elrond is a new blockchain architecture, 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 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
xDai Chain applications provide everyday users with fast transactions and extremely low gas prices. Since the xDai Stable Chain is Ethereum compatible, data and assets can be transferred seamlessly to the Ethereum mainnet providing backend safety and limitless opportunities to scale. This synergy between stability, speed, security and scalability opens the door for many exciting applications and new use cases.