Often, notorious product launches and trend-defining innovations come to mind when we think about the evolution of a technology. Consider all the current talk about chat GPT and how it’s already on the brink of revolutionizing many sectors and human activities, or how touchscreens, which we now take for granted, changed the very way we interact with electronic devices. However, nothing happens overnight. Any technology that goes mainstream has decades of experimentation and minor advancements behind it.
Last week we published an article discussing Ethereum’s new proposal ERC-4337, which will possibly bridge the gap between complex crypto stuff and users who don’t know what a digital wallet is. To those who don’t keep up with such developments it might sound like one of those before-and-after moments that came out of nowhere – the reality is that the proposal has been at least 7 years in the making, their engineers testing the limits of smart contracts and slowly polishing them. Big leaps and paradigmatic shifts are built on countless small breakthroughs.
Recently, we launched Uruguay’s first Bridge and Swap web platform. Our main goal was to provide our native blockchain community with a useful tool and so far it’s had a great reception. It might not seem much but the local crypto presence is strong. We’ve helped international clients develop powerhouse fintech products such as crypto exchanges (check out NDAX) but lately we’ve also been signing up for more local events and initiatives. It’s a great way to exchange ideas, directly participate in change and achieve mutual empowerment.
Cross chain interoperability is fundamental for the future of the technology, not only to attract new users or do better business (although that’s awesome too), but also because a major segment of the industry itself is pushing toward greater decentralization, increased security, better tools and data aggregation, more transparency and lower fees. In short, a safe blockchain environment powered by efficiency, flexibility and diversity of options for experts and uninitiated alike.
The technical concepts at the heart of our newest platform have been the subject of discussion in the blockchain universe for a while now. While related, they serve different purposes. Bridge platforms establish a connection between two blockchain networks to enable interoperability between them, allowing assets or tokens to be transferred more easily. Bridges enhance scalability, liquidity and functionality in decentralized models.
On the other hand, Swap mechanisms work to exchange one cryptocurrency token for another, typically facilitated by decentralized exchanges (DEXs) – trades can then take place without the need of a centralized intermediary. In short, we use Bridge systems to enable interoperability between different networks and Swap to quickly exchange cryptocurrencies.
Decentralized exchange models will take blockchain to the next level, both from a technological and economic standpoint. LI.FI, for example, enables an easy and fast implementation of a DEX model, completely severing the dependance on a centralized intermediary to orchestrate transactions. This platform provides several benefits for users and developers, such as increased transparency, reduced costs and greater control over funds.
Essentially, LI.FI is a bridge and DEX aggregator that can provide a remarkable user experience by being able to route assets on a chain to any desired chain. They offer an API/Contract level SDK and widget for other developers to integrate into their products, eliminating the need for users to leave their decentralized apps (dApps). The LI.FI DEX platform is based on the Binance Smart Chain, a blockchain network that allows the development of dApps and smart contracts. The website employs an automated market maker (AMM) mechanism so that users can trade cryptocurrencies without using order books.
Recently in the US, three major crypto-friendly banks (Silvergate, Signature and SVB) quickly went offline after becoming insolvent and facing liquidity issues. While some of the events and decisions leading up to that remain controversial, many US blockchain companies and tech startups that relied on said banks are moving out of the country. Even if not intentional, the government and other institutions’ lack of action to address the situation speaks for itself.
It’s not surprising that public trust in traditional organizations and systems is going through a crisis. It’s always baffling to see the lengths some industries and companies go to remain the same instead of adapting or employing technologies and solutions that would not only make their
service and products objectively better, but also have a positive impact in the world. After using a Bridge and Swap platform one can’t help but wonder how much speed and efficiency we’re depriving ourselves of due to the ruling conventional mindset and procedures.