Solana launches solution to connect with Ethereum and Binance Smart Chain

Solana announced this Monday (9) the launch of the Wormhole solution. More precisely, an improvement to its 2.0 version, which allows interoperability between blockchains.

Wormhole will allow tokens from the Terra, Ethereum and Binance Smart Chain blockchains to enter Solana’s ecosystem. In other words, it will be a more practical way for tokens from other projects to enter Solana’s entire DeFi area.

More possibilities

As reported by CoinDesk, one of the main improvements for Solana involves Serum. Serum is a decentralized exchange (DEX) supported by the FTX exchange.

By allowing tokens from other networks within Solana, Serum will benefit from greater liquidity through the Wormhole protocol.

Also, data will flow much easier between blockchains. That’s what Hendrik Hofstadt, director of special projects at Jump Trading Group, defends.

According to Hofstadt, who is part of the main supporter of Pyth (Solana’s data distribution network), he says that the price oracles will be able to deliver market information involving other blockchains.

The CoinDesk publication also mentions that even other forms of governance can enter Solana. The voting system is one of the examples mentioned.

How it works

The Wormhole protocol has 19 validators. It is the function of these validators to check if an asset of a blockchain is “locked” so that its copy moves to the second blockchain.

The protocol’s official website also reinforces that there is no leader in validation. All validators observe activities and sign through the “validator action approval” mechanism.

It is necessary that two thirds of the guardian nodes, as validators are called, sign the same event with individual keys. Once the action is approved, all contracts and chains involved with Wormhole consider the transaction valid.

A process of issuing and burning tokens is then started. However, it is important to emphasize that this is not a system of proof of participation, or PoS.

It is a proof of authority system that “borrows” identities and trust from the main chain. The Wormhole team believes this shape is less likely to misalign itself from the main chain than creating a separate PoS bridge.

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