Post the introduction of blockchains, one thing that the community rejoiced was owning the rights to their assets. However, as time passed and the dust of FOMO settled, unequivocally an epiphany set in that blockchains are but beautiful islands with no means of accessing them easily as one complete ecosystem. In this blog we will explore more about Native Token Transfer.
Transfer At Your Own Risk: Blockchain Bridge is Falling Down
When you speak of the narrative that 10% GDP on blockchain by this date or that date, at one end of the spectrum, it intrigues me. While, at the other end, I am amazed by the fragmentation blockchain has created, which makes this dream a chimera. For context, suppose, if you have a token on the Solana chain. Now, if you wish to transfer the same to the Ethereum or the Binance Network. What’s the best way out?
Everyone would weigh in favor of the bridges being treated as holy grail. However, they have ended up as necessary evil. And necessary evil does not help build up a next gen trustless, decentralized space. In such a case, we are simply drinking the same old wine from a new bottle because Chainlaysis, a crypto analysis firm report says that from 2021 onwards, the crypto space has lost more than $2 B to bridge attacks. All of that has happened because of smart-contracts compromise, bugs, and centralization of custodians. Now, the problem is that there’s no means to bridge different blockchains for interoperability sans bridges. And bridges are indeed falling down after looking at such data as mentioned above.
Into the Future: Beyond Bridges
With Native Token Transfer, blockchains are in control of transferring assets cross-chain without an intermediary. CCPT relays messages through market makers to execute orders across multiple protocols.
When assets are transferred from one chain to another, messages are sent in packets that trigger events through CCPTs and network messaging. The asset is then transferred to the liquidity network and received by the intended recipient through market makers executing the event.
When a message is sent on the source chain, it’s received by the destination chain in packets via the source chain. These packets trigger an event chain on the destination chain through network messaging. Finally, the market makers execute the event, and the asset is received by the respective person.
Though one may say that it sounds more or less like the same wine in a new bottle, but there’s a difference, this wine is more decentralized and secure from its predecessors because there’s no token locks or liquidity fragmentation obstructing the value of the wrapped tokens, when used across different blockchains ecosystem.
The Way Forward………
We have to realize that blockchain technology was conceptualized with the idea to decouple ownership and centralization. However, if you continue serving the same old wine with a new narrative in a new bottle, at one point or the other, we might see the problem of adulteration. The same is going along with bridges and there’s the need for a new way forward. CCTPs have envisioned Native Token Transfers across blockchains which can undoubtedly help blockchains gain mainstream adoption until we again see a new bug in the making like that of the bridges.
Our innovative approach to Cross-Chain Token Protocols (CCTPs) can play a pivotal role in overcoming the challenges of blockchain adulteration and interoperability. For further assistance, contact us directly to know more and explore our innovative digital solutions to read more such blogs.
