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HomeNewsAsiaA bridge allow ERC-20 tokens to exist on Dfinity’s network

A bridge allow ERC-20 tokens to exist on Dfinity’s network

This week, a new cross-blockchain bridge connecting the Ethereum network and Dfinity’s Internet computer will allow ERC-20 tokens to exist natively on Dfinity’s network, the developer behind the bridge said.
The Internet computer is a blockchain built by the Dfinity Foundation to help promote a decentralized network infrastructure layer. It is supported by well-known funds such as a16z and Polychain Capital.
The bridge is called Terabethia, which can realize cross-chain contract communication, asset mirroring, and transfer across different blockchains. It is built on the forked version of the Ethereum expansion tool StarkWare, which will enable the contracts on the two blockchains to communicate and allow anyone to mirror and use any Ethereum asset on the Internet computer, and vice versa.
The bridge allows blockchains to exchange data, tokens or smart contract instructions with each other. They operate independently of the rules or consensus mechanism of any blockchain to which they are connected.
"Similar to how Ethereum expands the functions, uses, and value of Bitcoin, we believe that Internet computers have the potential to do the same for Ethereum assets and applications, and may even become the long-term best L2 (layer 2) of Ethereum. "Explains Harrison Hines, founder of Psychedelic (Web 3 development studio behind Terabethia).
This bridge is ahead of Internet Computer's native Ethereum integration, which will allow interoperability between the two blockchains. The integration will allow Internet computer smart contracts to hold and call Ethereum assets on Ethereum, but will not allow ERC-20 assets to exist directly.
The migration of assets between Internet computers and Ethereum helps to create liquidity and complementary products for the user base of the two blockchains, such as non-fungible tokens (NFTs) or other decentralized finance (DeFi) products.
The DeFi protocol relies on smart contracts instead of third parties to provide users with financial services such as loans, borrowing, and transactions.
Internet Computer started adopting the "reverse gas model" this year, focusing on scalability. The model believes that developers provide the funds needed to run applications/contracts that use their natural gas-in this case, it is a fee for using the blockchain (Internet Computer).
But investors' response was not strong. The Internet Computer Token (ICP) has fallen 97% since its May issue-from $700 to $21 on Friday morning and there have been reports of insider trading and large token holders exiting their positions. As of Friday, the market capitalization of the token was US$5 billion, a 72% drop from the US$18 billion in May.
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