How Poly Network, a heterogeneous cross-chain protocol, provides value to the multi-chain ecosystem

Poly Network provides a comprehensive cross-chain solution that not only accesses blockchain networks that meet specific requirements, but also aspires to support all blockchain networks.

How Poly Network, a heterogeneous cross-chain protocol, provides value to the multi-chain ecosystem

With the rapid growth of ecosystems such as Coin Smartchain (BSC) and Solana, a set of cross-chain infrastructure that can connect multiple heterogeneous blockchain networks becomes extremely important, especially as everyone wants to migrate some basic asset liquidity from the ethereum ecosystem as an initial resource for the ecosystem to get started.

So cross-chain solutions or tools are getting more and more attention from the market, such as Ren Protocol, pNetwork, DeCus, which are cross-chain solutions only for assets, NEAR Rainbow Bridge based on the concept of light nodes, and more and more applications are starting to explore the possibility of cross-chain deployment.

One of the more unusual ones is Poly Network, which offers a comprehensive cross-chain solution that is a bit like Cosmos Hub in terms of functionality, connecting to multiple blockchain networks, but differs in that it can access not just blockchain networks that meet specific requirements, but wants to support all of them. poly Network says it has completed $4.5 billion in cross-chain asset transfers, with more than 110,000 addresses using the cross-chain service.

As one of the founders of Poly Network, Onchain Distributed Technologies CEO and Neo founder Hongfei Da said, “Poly Network provides interoperability across heterogeneous blockchains, helping projects and assets easily enter the interoperable world, and Poly Network becomes a key platform hub. Integrating with Poly Network will not only improve the scalability of individual protocols, projects, and tools, but will also optimize the flow and use of assets on their chains.

In contrast, Cosmos and Polkadot offer a more dedicated set of blockchain cross-chain solutions, having designed a cross-chain architecture that allows blockchains that access this solution to communicate. But many blockchains may not have native access to this framework, so Cosmos ecosystem, Polkadot ecosystem, Ether and Bitcoin network can’t communicate directly with each other through this solution, because they are all heterogeneous blockchain systems.

According to the technical leader of Poly Network, the difference between Poly Network and Cosmos and Boka is that Poly Network will not build a new center, but will bridge all the existing chains. Why Cosmos and Poca are slower to develop is because they have to re-frame the ecology instead of doing the cross-chain thing directly.

Demand from users and new public chains: asset cross-chain
With on-chain transaction costs (Gas) on Ether going up again, and users needing to spend hundreds of dollars to interact with smart contracts, there is a very immediate incentive to migrate some assets to other public chains that cost less and also offer similar functionality.

For public chains, the start of the ecology requires not only users but also a large injection of assets to form a network effect and develop an application ecology, especially for financial scenarios.

Compared with issuing emerging assets, a more convenient way may be to migrate some assets from the Ethernet ecosystem to the network of other new public chains, so Poly Network can build such a bridge and provide such a tool for all public chains and users.

In particular, EVM-compatible public chains will be the more popular platforms in the near future, because application developers can quickly migrate applications from the Ethernet platform to these public chains, and many cryptographic components of these public chains can be reused, which is relatively easy for Poly Network to support.

In addition, for other non-EVM compatible public chains, there are many opportunities to develop their own ecology, so Poly Network will also gradually support them. However, because many public chains have their own special cryptography and consensus design, it will take some development cost to support them.

The difference between heterogeneous chain and homogeneous chain may be bigger, homogeneous chain is equivalent to something like Cosmos and Boka, like block head and cryptographic algorithm are the same, so it’s more convenient to do it,” said Tan Yuan.

With the research and development of Poly Network team, ten heterogeneous chains have been accessed so far, namely Bitcoin, Ether, Neo, Ontology, BSC, HECO, OKExChain, Elrond, Zilliqa, Cosmos-SDK, “All ten heterogeneous chains have a separate sub-module compatible with different protocols. It is equivalent to be compatible with all the homogeneous chains inside the heterogeneous ones after being compatible with these ten heterogeneous chains.

Three core protocols: asset bridge, cross-chain exchange, and NFT
In addition to the current demand for cross-chain assets, the demand for liquidity aggregation will be born gradually with the deployment of multi-chain applications and the evolution of multi-chain ecology, and the second core protocol of Poly Network is laid out in advance for such a future.

Simply put, Poly Network’s cross-chain Swap (exchange) can provide any asset exchange function across blockchains. But at the implementation level, it needs to be based not only on Poly Network’s asset bridge, but also connected to the blockchain network’s own DeFi protocol to leverage the existing liquidity for greater effect.

For example, with the help of Uniswap on the Ethernet network, MDEX on HECO, and PancakeSwap on BSC, the liquidity is getting better and better with the development of the DeFi ecosystem, and the efficiency of funding is gradually increasing.

According to Poly Network, when users need to use cross-chain Swap, a lot of smart contracts will be called in the middle, “firstly, it will trigger the asset cross-chain, and then go through an intermediate pool of funds to swap any asset into the stable coin corresponding to the target chain, and then proceed to cross-chain to reach the target network.

For example, the O3 team, which previously developed the Neo Eco mobile wallet, has built the O3 Hub (cross-chain pool) module of the cross-chain aggregator O3 Swap based on Poly Network, providing users with cross-chain and any-asset services, and by adding liquidity to the O3 Hub, users can achieve single mining of multi-chain assets.

Poly Network’s third protocol, Poly Bridge NFT, focuses on a whole new asset class, providing a complete set of solutions for NFT across chains.

For most NFTs, whether they are game props or artwork, they are essentially assets, so NFTs may also end up flowing across different networks, using blockchain networks to amplify the liquidity of non-homogenized assets.

The bridge feature of Poly Bridge NFT is currently live on the main network, allowing users to transfer NFT assets from Ether to the BSC or HECO networks with lower transaction fees, and vice versa.

In terms of standard and mechanism, Poly Network transmits to the target chain to perform “casting/destruction” based on the properties (Metadata) of the original NFT, and since different NFTs have different metadata standards, Poly Network adopts the standard of Opensea which is more common in the industry, “In addition, it has ERC-721 is supported, and ERC-1155 will be supported in the next version.

Roadmap: A public chain serving public chains
Poly Network is more like a federated chain in its current form, but for a cross-chain platform with access to so many other blockchain networks, the ultimate home must be the public chain, otherwise it has a ceiling.

The current management of Poly Network relies on four large nodes to achieve a relatively centralized approach, but this model can be more responsive and updated in the early development stages of the protocol, and these four nodes are all veteran projects or institutions with good reputations in the industry: Onchain, Neo, Ontology, and Switcheo.

According to Poly Network team, “Poly Network mainly starts from solving cross-chain needs, but in the long run it wants to become a public chain.

So in the short term, Poly Network’s plan is to bring in more nodes or even public chains with industry reputation, which will not only boost Poly Network’s influence, but also bring in more resources to increase the network’s transaction volume and capacity as a result.

But in the long run, switching to a public chain would require changing to a set of consensus that requires no permission and allows everyone to participate fairly into the network. The team says that since Poly Network itself will not host assets, this set of consensus will be fine as long as it ensures the security of the chain itself, “Consensus can be considered such as BFT+PoS, because PoW is not very suitable for this chain.

In addition to the long-term plan to evolve into a public chain, Poly Network has many other current plans that have nothing to do with consensus, but more to do with increasing the functionality of Poly Network itself, such as connecting to more DeFi or NFT or connecting to more chains.

Poly Network, a project that originated in 2019, has been through more than two years of iterations. While the current market environment is far from the “all chains go together” stage, the rise of EVM-compatible chains has made the market feel such strong cross-chain demand for the first time.

There are already multiple cross-chain solutions in the market, and like the public chain ecosystem, the market is large enough to accommodate multiple solutions, not just one. But for such a protocol to provide public infrastructure services, we expect to see a more open, lower-cost protocol that has proven its security over more time, which is the only way to provide stable and secure cross-chain services for all blockchain networks.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-17 23:04
Next 2021-05-17 23:08

Related articles