On the eve of Ether 2.0, what kind of a big game is Near’s Rainbow Bridge playing?

The general idea of Rainbow Bridge is simple to describe, but difficult to implement.

While BTC’s efforts to incorporate the ethereum DeFi ecosystem have just paid off, DeFi has stepped into an awkward bottleneck. Bad network congestion and high gas fees have turned off many loyal users. Some good teams have joined to solve these difficulties, but Layer is still uncertain, and there is still a long night to go in Ether 2.0 led by V God himself, at this juncture Near’s Rainbow Bridge can be said to bring a ray of light to everyone.

The general idea of Rainbow Bridge is to use two light clients – one is a light client for Ether (as a NEAR contract) executed in Rust language, and the other is a light client for NEAR (as an Ether contract) executed in Solidity language, both verifying the state of their traces in a trustless manner, and after confirming finality, transferring the data to each other for ecological use through the relay layer.

On the eve of Ether 2.0, what kind of a big game is Near's Rainbow Bridge playing?

Although it’s simple to describe, it’s hard to implement. Mars Investment Research will take a look at Near’s ambition and how they plan to play this big game with the Rainbow Bridge.

Carrying forward and starting back

Regarding cross-chain efforts, the effort to bring BTC into the DeFi ecosystem is an important process. The underlying logic for the rise of cross-chain assets is the supply of the native asset platform BTC and the demand cut by the open financial platform ETH, and the insufficient supply of underlying assets: due to the state of segmentation between blockchain chains, it is very necessary to carry out asset cross-chain, and the insufficient underlying assets will limit DeFi development.
What “BTC+DeFi” brings us is not just “a larger DeFi market space”, but to get a share of this larger market, investors and developers need to explore and practice more technology, product and ecological development for BTC public chain and DeFi.

Thanks to the general environment of the bull market and the expectation that Ether 2.0 is considered a semi-finished product, all these spaces give the new public chains a rare momentum and opportunity to catch up. On the one hand, the more active public chains in the market now include Polkadot , Cosmos and other cross-chain concepts; on the other hand, the head exchanges are also trying to join the public chain track, such as Heco, BSC, OKExChain and so on.

Against the backdrop of learning from the successes of their predecessors and trying to overcome their challenges, third-generation cryptocurrency projects are building increasingly sophisticated and more robust blockchain ecosystems. near and its rainbow bridge are created in this general context.

The NEAR protocol utilizes NightShade dynamic sharding technology to provide good scaling capabilities for the next generation decentralized application platform; while Rainbow Bridge is used to connect the NEAR blockchain to the DApp platform between Ether. Although Ether is very successful, it is indeed an indisputable fact that the gas fee is always high during its efforts to achieve the 2.0 upgrade version.

In NEAR’s planning, as the decentralized network develops to a certain stage, the two huge blockchain ecosystems can seamlessly interact with each other to achieve shared assets, data transfer and cross-chain invocation. Is this ambition big enough? We can further understand their idea based on what NEAR Unicron Yilong mentioned in an interview – in abstract terms, NEAR is a developer platform that provides a lot of novel tools to help developers build open source applications that anyone can use without a license. On top of that, as a developer you can also build sustainable business models that create value and truly transfer that value around the world.

In the eyes of the Genesis team, NEAR strives to be the AMAZON of WEB 3.0, providing customers (mainly Dapp developers) with an on-the-go development platform. Compared to Poca, Poca is more interested in becoming the future interoperable system in the web 3.0 world, connecting different on-block ecosystems.

Near utilizes a new Doomslug blockchain that is infinitely scalable with slicing technology, allowing its high-performance EVM to reach more than 10 times the processing power of Ether, and utilizes Nightshade’s dynamic slicing method, with a relatively small amount of computation for contract execution, a confirmation speed of only 1-2 seconds per transaction, and an average Gas per transaction Fee is less than 1 US dollar per transaction.

The New Phase

In what way will cross-chain interoperability be launched in the future? Will cross-chain interoperability be decentralized and permissionless? How will cryptocurrencies appeal to those who are trying to find alternatives to existing systems? What kind of governance architecture is easy to use not only for L1 solutions, but also for other non-L1 solutions?

NEAR is trying to open the door to this new phase of development with the announcement of the ETH-NEAR Rainbow Bridge – a cross-chain interoperability bridge designed to enable the free flow of assets and applications across the Ethereum and NEAR blockchains.

The Rainbow Bridge works as follows: an Ether client and Near client operate in tandem, and both can read and track the state of the other chain and perform the corresponding operations, processes that require no third-party trust and no permission, and after confirmation of the correctness, the chain assets can be transferred to the other chain via the relay layer. All ERC20 tokens can be freely transferred between Ether and Near, which allows the Near ecosystem to be seamlessly built on top of Ether’s well-established ecosystem, and Ether’s mature financial infrastructure to be fully utilized. Users can send ERC20 assets directly from MetaMask to Near wallet or Dapp, and vice versa, including NFT transfers, and users can use ETH to pay Gas Fee.

On the eve of Ether 2.0, what kind of a big game is Near's Rainbow Bridge playing?

Rainbow Bridge will enable faster transfers of cross-chain tokens. Rainbow Bridge is able to support almost all types of interactions between Ethereum and NEAR blockchains, but first and foremost ERC20 tokens can already be transferred seamlessly between NEAR and Ether. By using the Rainbow Bridge tool, developers can leverage Ether assets on NEAR, as well as NEAR assets on Ether.

Why would a developer make this choice, you may ask? Users who transfer homogenized passes to NEAR through the Rainbow Bridge can take advantage of the 1 to 2 second transaction times, low transaction fees (typically less than 1 cent), and low cross-chain transfer fees that NEAR can offer; by using the Rainbow Bridge tool, developers can leverage Ether assets on NEAR, as well as NEAR assets on Ether. Soon they will be able to access the application state of another chain through either NEAR and Ether, and eventually this will extend to any blockchain. Users who transfer homogenized passes to NEAR via the Rainbow Bridge can take advantage of the 1-2 second transaction times, low transaction fees (typically less than 1 cent), and low cross-chain transfer fees that NEAR can offer. Moreover, they can continue to keep the original user base of the Ether ecosystem.

Ethernet users who do not yet have a NEAR account can create one for free and easily with MetaMask on the ETH Faucet service provided by Paras for them. Anyone can simply log in to MetaMask and prove that their account balance is above 0.05 ETH to receive a NEAR account and immediately use the Rainbow Bridge cross-chain.

Who’s in with a chance?

With the NEAR-ETH Rainbow Bridge and other tools that support Ethereum contracts, NEAR is trying to get a part of the Ethereum ecosystem to migrate over. Ultimately, the blockchain is a service provider for applications built on top of it. With better tools to migrate assets, smart contracts, and even the entire state of the crypto protocol, technology lock-in can be reduced and projects will have more opportunities to choose the blockchain that best fits their needs.

Innovations in areas such as DeFi and NFT have driven a surge in demand for ethereum networks, and transaction fees are sky high as a result. Rainbow Bridge allows users to seamlessly transfer assets to the developer-friendly and low-cost NEAR platform, thus circumventing higher gas fees without compromising speed.

In terms of ecological construction, Paras, Mintbase, crowdfunding platform Common Fund, Defi projects Flux and Balancer, 1inch/Mooniswap and many other projects are already online on the NEAR platform, especially the NFT and DeFi tracks are worth waiting for.

Now there are not too many Near-based NFT projects, but most of them are about NFT trading platforms. Near’s slicing technology can be well adapted to the high-frequency transactions of NFT trading platforms, as well as the needs of bulk tokenize NFT. Although the current NFT ecosystem still has a certain gap compared to Ether, relying on the technical advantages of scalability and driven by the key feature project Mintbase, it is expected that more NFT projects will choose to build on Near in the future, and Near may become another NFT popular public chain platform.

The first example of moving assets from Ethereum to NEAR is the Flux protocol – an open financial marketplace protocol (more similar in design to Augur.) Flux launched its contract on NEAR’s mainnet, and the marketplace on Flux will be denominated in DAI, the most popular decentralized stablecoin on Ethereum at the moment, with supply currently growing rapidly. Like the NFT logic, this high-frequency usage scenario will allow more DeFi projects to migrate over.

Rainbow Bridge allows NEAR and the Ether blockchain to communicate with each other. Technicians developing on NEAR can access all assets and decentralized financial products available on Ether. Meanwhile, if the gas fee remains ridiculously high, developers in Ether can easily migrate to NEAR.

In the future, both DAWs, DApps, NFTs, and interoperability, which are deeply expected, will have a better chance in the big game of NEAR’s Rainbow Bridge.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/on-the-eve-of-ether-2-0-what-kind-of-a-big-game-is-nears-rainbow-bridge-playing/
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