Yesterday, pNetwork introduced the launch of its new cross-chain bridge that brings Bitcoin additionally to Algorand.
ICYMI: @pNetworkDeFi formally launched its cross-chain bridge connecting the Bitcoin and Algorand networks! This permits Bitcoin (BTC) to be seamlessly moved to #Algorand. Be taught extra ? https://t.co/L9NDcVPgZd
— Algorand (@Algorand) Could 31, 2022
Bitcoin can be utilized on Algorand due to pNetwork
The pNetwork bridges permit the creation of tokens that may be exchanged on par with cryptocurrencies residing on different blockchains.
On this particular case, these are tokens created and hosted on Algorand‘s blockchain, however exchangeable 1:1 with native BTC on Bitcoin’s blockchain.
The brand new token is known as pBTC and is definitely already current not solely on Algorand but additionally on different blockchains, equivalent to Ethereum, Polygon, Arbitrum, BSC, EOS, Telos and XDAI.
For each pBTC token issued, there may be one BTC locked in pNetwork’s reserves, in order that at any time it’s doable to return 1 pBTC and get 1 BTC in trade.
Apart from pBTC, pNetwork has additionally created different cross-chain tokens, equivalent to pETH, pUSDT, pUSDC, pLTC, pDOGE, and so forth.
Again in 2021, pNetwork and Algorand introduced a partnership to deliver cross-chain tokens to Algorand, and simply yesterday the protocol was launched.
This protocol will permit Algorand customers to make use of native tokens from Ethereum, Binance Good Chain, Polygon and different blockchains sooner or later. For now, the one one truly launched is pBTC.
The partnership between pNetwork and Algorand introduced in April is already beginning to bear fruit due to this new bridge
What’s pNetwork
pNetwork presently helps 15 completely different blockchains, together with some Layer 2-based ecosystems equivalent to Polygon.
The pBTC bridge on Algorand is already lively and supplies a quite simple interface to trade BTC with pBTC, and vice versa. As soon as pBTC are acquired on Algorand, they’re usable in all dApps primarily based on this blockchain.
The launch of the cross-chain bridge between Algorand and Ethereum can be deliberate shortly.
The aim of pNetwork is to attach all main crypto networks on this manner, in order that customers can switch money and property seamlessly between completely different crypto ecosystems.
The Algorand community particularly has been rising quite a bit not too long ago by way of the growth of latest dApps and providers.
Nevertheless, within the DeFi sphere, for instance, it’s nonetheless solely in its infancy, with a TVL of solely $150 million, which locations it in thirtieth place amongst blockchains with DeFi protocols. It’s doable that the usage of pTokens might push the enlargement of the usage of DeFi protocols on Algorand, as this enables for the usage of broadly used cryptocurrencies equivalent to BTC and ETH.
It’s value noting that the value of ALGO, Algorand’s native cryptocurrency, has been falling nearly continually since September final 12 months. Furthermore, thus far it has misplaced 88% of its worth from its peak in June 2019.
Specifically, it has misplaced 32% within the final 30 days, regardless of some excellent news that would doubtlessly have made it recuperate. Nevertheless, the collapse of the crypto market concomitant with the implosion of Terra has interrupted this short-lived progress part.
