What if cryptocurrency could be sent and received through different blockchains? For example, using bitcoin on the binance chain will allow users to trade bitcoin with lower transaction costs and faster payment and settlement time. It takes about one hour to receive six transactions on BTC, while it takes only six seconds to receive the same number of confirmations on binance chain.
The swingby protocol makes this possible.
What is a deal agreement?
Swingby is a company founded in Singapore by Yusaku Senga in 2018. Swingby noted that despite bitcoin’s success, it faces significant problems in terms of cross chain interoperability and scalability.
To solve these problems, swingby created its skybridge network. Skybridge supports fast and unmanaged token transactions between all ECDSA based blockchains, starting from binance chain, but will soon expand to USD stablecoins, Ethereum, etc.
Each blockchain has its advantages and precautions, but their local tokens are subject to technical parameters and cannot flow freely between chains. If bitcoin users want to take advantage of the lower transaction costs of another chain – or use dapps, decentralized exchanges, or other defi services that are not allowed in the original chain, they must first convert their bitcoin into the local currency of the chain.
Unfortunately, in the process, they will lose their position in BTC and their price exposure to its market volatility. However, through the 1:1 swap protocol bound by swingby, the swingby protocol allows users to obtain the benefits of different blockchains, as well as the price exposure to fluctuations in the original cryptocurrency market.
Cross chain transaction improves the efficiency of bitcoin network. Bitcoin blockchain sometimes experiences a period of high traffic, resulting in network bottlenecks and high transaction costs. However, moving transactions to other chains may reduce the probability of these problems occurring on bitcoin networks. In addition, because swingby enables you to transfer bitcoin, the most liquid cryptocurrency in the market, to a less liquid blockchain, swingby also improves the liquidity of the blockchain to which bitcoin is sent.
The first cross chain transfer realized by swingby through its test network is bitcoin on the binance blockchain. However, the team plans to enable untrusted transactions between usdt and busd, XRP and Tron, Ethereum and EOS, and more.
Benefits of 1:1 cross chain exchange
There are many benefits to being a participant in social networks. Skybridge is the proof of an equity network that needs node operation. As a node operator on the swing by network, one of the most important benefits is that you can obtain passive revenue in the form of swing by token from each exchange signed by the nodes.
One of the most innovative features of swingby is that it allows users to take advantage of DAPP, defi services and decentralized exchanges, which are built in addition to the tokens currently held by users. In the current ecosystem, cryptocurrency holders have to convert their cryptocurrency into local tokens of their respective platforms through a centralized trustee. However, on swingy, cryptocurrency holders can use platforms and services built on separate blockchains without having to exchange the cryptocurrency they already hold for the local cryptocurrency of those platforms and services.
Swingby’s skybridge is also ideal for privacy conscious encrypted users. Some people are hesitant to join the cryptocurrency world because they need to share personal identity information before they start and run. However, swingby is not credible; There is no centralized custodian. Users can also control their private key on swingby. Different from centralized transaction, centralized transaction usually requires users to blindly transfer their asset custody rights to a third party.
How to perform cross chain exchange?
With swingby, cryptocurrency users can take advantage of features that belong to the blockchain, rather than the tokens they currently hold. Swingby ushered in a new era of interaction between encrypted liquidity and blockchain. If users seek lower transaction costs, faster transaction speed or the ability to use other blockchain platforms and services, they no longer need to give up assets or risk exposing private information to third parties.
Responsible editor; zl