New Bridges New Chains
Earlier this year, Ethereum had something of a happy problem. The mania for NFTs helped drive up the value of Ether, the in-house currency on the network. Twelve months prior, it was trading at $210, but in May, the price soared to $3,204.
That was the happy news. The less happy news was the congestion the NFT craze was causing, making transactions fees more expensive and slowing transactions for those not willing to pay excessive gas fees. Even less happily, for users anyway, this congestion drove up fees. The fees go up or down depending on how many transactions are being pushed through the network so the huge influx of new users caused by the NFT mania made all transactions large and small exorbitantly expensive.
This is not the first time something like this has happened. When the CryptoKitties app was launched in 2017, it ran on Ethereum, and within 24 hours, consumers experienced a similar gas fee issue as explained above.
In 2017 and this year, the problem was the same; scalability.
DeFi and CeFi
Decentralized finance (DeFi) is appealing in many ways; it democratizes financial transactions. DeFi eliminates the need for middlemen institutions like banks or brokerages, instead relying on smart contracts on blockchains. As such, transactions are open to everyone because they don’t require documents like government-issued IDs or Social Security numbers. Software written on blockchains allows for peer-to-peer transactions with only software acting as the middle man. But the problem once again is scalability.
Centralized finance (CeFi) means all transactions are routed through a central exchange. Users are subject to the rules set by the centralized exchange. Users are sacrificing decentralization in exchange for scalability, which allows for faster and cheaper transactions. Think about what happened in the auto industry when the use of assembly lines was adopted in manufacturing. Cars could be made faster and sold for cheaper. That’s what scalability does.
We Heard You
Our users were among those caught in the NFT created bottleneck causing their transactions to slow and their fees to rise. We heard you loud and clear. To prevent this from happening in the future, we are happy to announce that SWAPP Tokens will soon be launching on three new chains to offer our customers more scalable solutions.
This launch will give more people access to SWAPP, increasing demand, and lowering supply. As Econ 101 indicates, prices should theoretically shoot up.
Binance Smart Chain (Launched)
Binance is a cryptocurrency exchange founded in 2017 and is currently the largest exchange in the world in terms of its daily trading volume. Binance Smart Chain (BSC) is a blockchain network designed to run smart contract-based applications. The smart chain runs parallel with Binance’s original chain giving users both fast transactions and smart contract functionality.
Additionally, BSC has implemented the Ethereum Virtual Machine so it can run Ethereum-based applications. The BSC is a copy of the Ethereum Smart Chain but requires centralized proof to validate transactions, making them faster and cheaper.
Polygon is a protocol and framework for building and connecting blockchain networks that are Ethereum-compatible. With its two-layer solution, Polygon removes the barriers that users have encountered with blockchains, high fees, and slow speeds. It validates transactions off-chain and then adds them to the blockchain.
Cronos is the EVM chain that runs parallel to the Crypto.org Chain. EVM stands for Etherum Virtual Machine and is the runtime environment for smart contracts in Etherum. Cronos is faster and cheaper, able to do more transactions per minute than ETH. Again, with an eye to scalability, it will allow developers to instantly port apps from Ethereum and EVM-compatible chains.
One of the key features of blockchain technology is decentralization. But as each blockchain network gets larger and more networks are established, each is essentially an island, not connected to one another with no ability to exchange information or value outside of itself. The lack of communication limits decentralization and makes innovation, trade, and economic growth difficult.
How would an island solve this problem? By building bridges between one another. SWAPP is building these bridges. A blockchain bridge is a conduit where tokens and data can travel between chains. While each chain will have different rules, a bridge creates compatibility between them.
Things Move Fast
In the world of cryptocurrencies and blockchains, things move fast. SWAPP will keep pace with this fast-moving world, but will never forget the core principles SWAPP was built on.
SWAPP will continue our dedication to transparency & privacy. And to making the functionality of our platform and the platforms we partner with available to everyone with the best of what DeFi and CeFi have to offer. We are excited to be working with Binance Smart Chain, Polygon, and Cronos. We heard you, and we responded.