Solana launched an ETH bridge platform dubbed Wormhole which connects to Ethereum and adds support for ERC 20 tokens and ETH as we are reading in our ethereum news.
DeFi platforms and other projects can now easily take advantage of Solana’s low fees and fast transaction speeds as Solana is a top 100 blockchain that has a $95 million market cap. The Wormhole protocol connects its SPL token standard with ETH ERC-20 token and ETH tokens which means that the developers can move tokenized assets across both blockchains and can easily take advantage of the high transaction speeds and low fees of Solana’s blockchain.
As Solana launched the new platform, it stated that the developers can use Wormhole without having to rewrite their Ethereum contracts and do not need to dedicate to one single blockchain:
“Bridging across to Solana negates that friction and still allows for the value to settle back to the Ethereum network if so chosen.”
With the launch of Wormhole, Solana wants to decongest Ethereum’s DeFi ecosystem which has been subject to major gas fees, price slippage, and aborted trades. Other projects like payment gateways, identity services, and crypto-based gaming apps can also use the project’s blockchain for their own token data. The Wormhole protocol was developed in partnership with Certus One which is a company that runs staking nodes and validator nods for other blockchains like Cosmos, Terra, and IRISnet.
Solana invited the blockchain developers to use Wormhole as a part of the virtual hackathon on October 28. A few other DeFi projects like Curve, FTX, Balancer, Aave, and Gauntlet will also be involved. In terms of practical applications, Solana became the basis of the Defi exchanges like Serum and FTX. The project partnered with the oracle platform Chainlink and Terra on various efforts. In the meantime, Coinbase Custody added the SOL token to its staking service as the token had a market cap of $91 million which made it the 100th largest cryptocurrency. Bigger Ethereum integration could attract even more projects to Solana but it remains to be seen if developers will be truly interested.
1) Announcing: Wormhole – a secure, trustless bridge connecting Ethereum to Solana. https://t.co/FwGRRluAU5
— Solana (@solana) October 8, 2020
As recently reported, The company behind USDT, Tether launched on Solana, and said that the users will be able to exchange USDT at a speed greater than 50,000tx/s for less than $0.00001. Tether is the creator of the largest stableocin in the market and announced its latest partnership with the Solana network. according to a press release, Tether will be integrating USDT into the Solana network to leverage the low costs and the high speeds.