Multichain infrastructure network, Biconomy, has formally launched its core network Hyphen, setting the stage for instant, low-cost token transfers between blockchains like Ethereum and Polygon.
With the launch of Hyphen, users can make near-instant USD (USDC) currency transfers between Ethereum and Polygon, instead of waiting 30 minutes or hours as is currently the case with transfers. Biconomy can facilitate quick transfers, maintaining and rebalancing liquidity on both sides of the chain, the company said on Tuesday (10).
Biconomy’s chief technology officer, Sachin Tomar, explained the existing challenges facing transfers between chains:
“On average, to transfer blockchain funds from Layer1 to Layer2, it can take 40 minutes to 7 days for users to receive their funds […]“More specifically, it currently takes about 40-50 minutes to get Polygon Network ERC20 Tokens for Ethereum via its native bridge.”
In his opinion, these challenges lead to weakened network effects and result in a more difficult user experience. “Hyphen solves this problem,” he said, enabling developers to offer value transfers between Ethereum Virtual Machine networks, various second-tier solutions and side chains.
Future iterations of the Hyphen network will be completely decentralized, said Biconomy in a post on Twitter.
As we build and further improve Hyphen, we will completely decentralize infrastructure across all supported networks.
Very soon, anyone could provide liquidity, act as nodes and contribute to the protocol!
Stay tuned for more information!
– Biconomy (@biconomy) August 10, 2021
Biconomy recently completed a $9 million private fundraising round that was co-led by DACM and Mechanism Capital. To date, the company has raised $10.5 million from private investors and processed more than $570 million in transaction volume.
With the cryptocurrency market showing signs of life again, demand for cross-chain swaps is likely to increase, especially as decentralized finance, or DeFi, continues to grow in popularity. Platforms like Polkadot and Celer continue to place great emphasis on integration and interoperability across chains, with more developers coming on board to promote that vision.
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