Stellar (XLM) Presents Unique Opportunity With Its Launch Of A New DeFi BridgeMay 10, 2022 3:08 pm
A representative of Stellar just announced that the blockchain would now be able to support a new DeFi bridge that would allow XLM tokens to be bridged with Polkadot and Kusama tokens.
A showcase of the capability of this new bridge was done in the beginning of May and the demonstration showed that the process was quick and easy.
In fact, it was actually able to be done in just a few seconds which indicates the high speed of the bridge which is essential to have for a DeFi platform.
In addition to its impressive speed, it was also showcased that the platform supports swapping from crypto to fiat currencies and is a very attractive alternative to atomic swaps which are currently used to transfer tokens from one chain to another.
— CryptoSpurr (@CryptoSpurr) May 6, 2022
The bridge will serve as a reliable alternative for atomic swaps. Atomic swaps allow tokens to be transferred from one chain to another. However, Atomic swaps have some limitations.
Two or more participants are required for Atomic swaps to succeed, and transactions must co-occur.
Viewers of the podcast expressed their appreciation for the development. More tokens are becoming bridgeable, giving crypto users the option to alternate between different chains.
Stellar will act as the backing blockchain for the bridges, while Pendulum will serve as the issuing blockchain. Different cosigners will control the Stellar Bridge.
Any of the cosigners can join and leave the network at any time. This will help maintain decentralization.
This new bridge will also be able to be integrated on a variety of other parachains as well which means it is not just limited to the Stellar blockchain.
Essentially, it will now be possible to transfer tokens between Stellar and any Polkadot or Kusama blockchains directly without needing any third-party service.
This then ensures interoperability between the different blockchains where they will be able to benefit each other mutually.
DeFi bridges are most likely part of the second stage of evolution when it comes to blockchain technology and cryptos like XLM who are able to take advantage of this early will likely have a bullish outlook as it gets all the benefits of interoperability.
reddit 🤖: Stellar to Polkadot and Kusama Bridge for DeFi Showcased https://t.co/iJ8G7McZvZ
— storewire (@storew1re) May 6, 2022
The Stellar x Dotsama Bridge can be integrated by any Polkadot or Kusama parachain. With the DeFi Bridge, users can freely transfer tokens from one blockchain to another without needing a second party.
The Polkadot x Kusama network is utilized by many mainly because of its parachains. The parachain on the Polkadot and Kusama networks allows external networks to interoperate via the bridge.
The bridge is decentralized, and its smart contract can complete trustless transactions on the network.
Stellar was created as a reliable protocol for making retail and cross-border payments. Stellar holders will enjoy a better user experience with blockchain interoperability now on the protocol.
Currently, the price of XLM is being affected by the overall crypto market slump that has been caused by the Fed’s tightening policies, but this presents a unique opportunity for investors who believe in the vision of XLM.
— Stellar (@XLM_Top) May 5, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.