Since its inception 6 years ago in 2014, the Syscoin protocol has come a long way. Syscoin is a blockchain protocol that hosts robust and powerful features allowing its users to transact at very high throughputs, with near-instant confirmation, in a secure, low-cost, and straightforward way.
The project’s aim is to democratize and liberalize the use of blockchain technology across different sectors such as public services, education, healthcare, and other businesses.
One of the major hurdles that are slowing down the mainstream adoption of blockchain technology is the lack of interoperability between different blockchains. Syscoin has taken the challenge head-on and plans to break this barrier by developing seamless, two-way bridges.
Syscoin Bridge – Building Bridges Among Different Blockchains
As part of the 4.0 release of Syscoin protocol, its development team is working on the first-of-its-kind zero-counterparty bridge to and from other blockchains such as Ethereum.
Syscoin Bridge provides interoperability features such as easy transfer of ERC-20 tokens between the Syscoin and the Ethereum blockchains. This is great news for Ethereum developers as it will help to overcome the roadblock of scalability, on an area in which the Syscoin protocol excels.
Undoubtedly, the Ethereum network remains as the preferred choice of DApp developers, especially in the Decentralized Finance (DeFi) market. But scalability has been one of the biggest issues for the developers impacting Ethereum’s growth.
Using the Syscoin Bridge protocol, Ethereum developers can easily leverage Syscoin network’s lower transaction fee and higher throughput for their DApps. Syscoin’s blockchain infrastructure is a zero-confirmation directed acyclic graph (Z-DAG) that can handle a higher number of transactions at a much faster speed than Ethereum’s. Syscoin’s transactions throughput is above 60,000 transactions per second, whereas Ethereum can handle only 15 transactions.
The key takes away here is that all of this can be done without compromising the smart contract functionality of Ethereum, and while maintaining the total DApp token supply across both the blockchains.
Using Syscoin Bridge, Ethereum developers can easily send their ERC-20 tokens to run on the Syscoin network, where they can be transacted at high throughput and with near-instant confirmation, with the added bonus of reducing traffic on the Ethereum network.
Understanding the Workings of Syscoin Bridge
The basic process of establishing a zero-counterparty bridge and moving tokens back and forth between the two networks involves the burning of tokens on both the Syscoin and the Ethereum network.
The burning process removes tokens from the circulating supply on one chain that derives a “proof” used to mint tokens on the adjacent chain. This creates a 1:1 representation of tokens on the new chain and empowers them with the capabilities of the new chain. You can learn more about how Syscoin Bridge works here.
Another key concept of the Syscoin-Ethereum bridge is the Superblock contracts. These contracts create a sidechain by anchoring the block header data from the Syscoin blockchain onto the Ethereum blockchain.
The Bridge Agents help to secure the sidechains in returns of rewards and fees in either ETH or SYS tokens. This unique incentive structure brings more participating agents on the platform.
The two primary roles of the Bridge Agents include submitting the block data to Ethereum and challenging any type of bad submissions.
All-in-all, the Syscoin Bridge plays a crucial role in establishing interoperable solutions for flexible connectivity between the two blockchain networks. Speaking to the Crypto Briefing publication, Syscoin founder and lead developer Jagdeep Sidhu said:
“One platform will not be capable of supporting global demand [for decentralized finance] without being centralized, and at that point, it is essentially traditional finance. Proper interoperability bridges provide decentralization for users and systems, alleviate scaling pressures, and empower users to determine their own speed/security trade-off.”
Syscoin founder Jagdeep Sidhu