Tokens across blockchain
Solana, which is used in the decentralized exchange Serum , has announced the "Wormhole" bridge that interconnects Ethereum and Solana.
The name's wormhole is like a tunnel between one point and another in space-time, and it appears as a concept that allows for instant long-distance travel .
Wormhole connects Ethereum (ETH) and EERC20 tokens to SPL tokens, which are token standards for the Solana blockchain. This allows tokens on the Ethereum network to benefit from Solana's processing speed and low cost, but it is also possible to return value to the Ethereum network at any time.
Wormhole introduces a decentralized cross-chain oracle called guardians, which checks token lockups and burns on one chain to which the guardians are connected.
This will either issue a new token or release the token in the other chain. The reverse is also possible.
In addition, startup Certus One is cooperating in the development of Wormhole. Wormhole is one of the projects connecting Solana to other networks, and many teams are also working to build a bridge to Solana and Serum.
DeFi issues, fees and speed
The decentralized finance (DeFi) sector, including Serum, has received a lot of attention in the last few months, creating a new boom, but Ethereum network congestion and high fees have once again emerged as challenges.
Compared to Ethereum, the newly developed blockchain Solana ensures scalability and enables faster processing, and can be expected to reduce network congestion and fees.
On the other hand, it is undeniable that platforms that have already attracted a large number of users and value have an advantage over new projects in terms of liquidity, even if fees are high, and it can be said that the network effect is working.
Regarding Serum (using Solana), which is a decentralized exchange of FTX, Leopold Schabel, CTO of Certus One, said, "It is difficult to start a new ecosystem from scratch"
Wormhole, which connects Ethereum and Solana, is expected to solve these problems.
Regarding the launch time of Wormhole, most of the functions have already been implemented, and although the launch time of the main net has not been disclosed, security audits are scheduled to be carried out by experts.
About Solana
Features of Solana (SOL)
The blockchain "Solana" is faster processing and has lower fees than the Ethereum blockchain. Ethereum is currently processing about 15 transactions per second, while Solana is capable of processing 50,000 transactions. SOL, the native currency on the platform, is used for staking, transaction fees and governance. Unlike other high-scaling projects, it is unique in that it does not rely on a Layer 2 solution, but instead achieves high scaling at Layer 1.
Source: Medium
