Conversion of ERC-20 tokens to BEP-20 tokens made simple
Published in · 5 min read · Dec 13, 2021
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Editor’s Note: Please do due diligence before putting your money or using new crypto projects.
The Ethereum network, the Bitcoin network, the Solana network, the Binance smart chain, the Cardano network and many other blockchain networks that exist all have unique functionalities and aim to achieve the goal of decentralization.
However, as blockchain technology evolves and more players jump into the game, there exists a loophole that becomes pronounced- the inability for blockchains to exchange information or value with each other.
This loophole has led to a limitation on how far decentralization can be achieved as it hinders future advancement on blockchain technology and limits economic growth. The siloed nature of the blockchain is of high disadvantage to DeFi users as it locks them with the option of using only a single network. For this reason, the blockchain bridges emerged.
What is a Blockchain Bridge?
A blockchain bridge is a connection that enables the transfer of tokens, data, or smart contracts instructions between two different blockchains. These blockchains can have different protocols, rules and governance models.
With blockchain bridges, users can convert tokens on one blockchain to another. For example, tokens on Ethereum blockchain can be converted to tokens on the Binance Smart Chain without any stress. Blockchain bridges give users the ability to take advantage of lower transaction fees on scalable blockchains, deploy digital asset transfer fast and easy, and implement dApps across multiple blockchains.
One popular blockchain bridge that has played a crucial role in facilitating the transfer of tokens between different blockchains and enhancing interoperability is the Binance Bridge.
What is Binance Bridge?
Bianance Bridge is a cross chain blockchain bridge whose primary aim was to increase interoperability between different blockchains and it enables users convert crypto assets between the native blockchain to Binance Smart Chain.
The Binance bridge interface was open to any address and did not require users to register a Binance account before using it. However, sometime in November 2021, Binance announced that it was shutting down its Binance Bridge and that it would no longer render such services to its users. This action was effected on November 25, 2021 at 8AM UTC.
This announcement and action taken by Binance has put fear in the heart of many crypto investors, has caused a lot of chaos in the crypto industry and has left many investors in search of a better solution. While a solution to a problem may seem far in many cases, the solution to this issue isn’t as far as users think it is. Hasbon Rocket is seen as the best alternative to Binance Bridge.
What is Hashbon Rocket?
Hashbon Rocket is a new generation of decentralized exchange that has implemented a true decentralized cross chain exchange and allows users to exchange any ERC-20 token for any BEP-20 token and vice versa. Although its MVP currently supports the exchange between ERC-20 tokens and BEP-20 tokens, it plans on adding all EVM compatible blockchains. So in future, users will be able to perform an exchange between Matic, fantom, xDai, Ethereum classic and many other blockchain tokens.
One issue the Ethereum blockchain faces is the scalability issues as it experiences high transaction rate and has begun to operate at its bandwidth limit. This has led to the skyrocketing of gas fees thus making it expensive to the ordinary user. This issue led many projects to release a new version of their tokens on Binance Smart Chain which is a centralized solution.
To achieve decentralization, it is seen that exchanging ERC-20 tokens for BEP-20 tokens in a decentralized manner is a tedious process as class DEXs only support the exchange of tokens within one blockchain. Solving this issue is the core aim of Hashbon Rocket as it enhances the decentralized exchange of any ERC-20 token for any BEP0–20 token and vice versa.
Hasbon Rocket functions using a proof of stake consensus mechanism where different Arbiters make decisions and the weight of their decision is based on their HASH token share. This implies that the greater their share is the more voting power they have and the higher their fee is for a correct response.
The process used by Hashbon token is in three phases
· A liquidity provider uses Hashbon rocket to set a trading pair, transferring ERC-20 and BEP-20 tokens to the smart contract
· A client transfers tokens to one chain and receives tokens from the other.
· A network of Arbiters confirms the deal and carries out cross-chain communication.
Why Use Hashbon Rocket
When compared to other solutions to exchanging tokens, Hashbon Rocket is a truly decentralized method of exchanging tokens and it submits to the true aim of the blockchain technology.
Unlike other blockchain bridges, Hashbon supports an unlimited number of tokens and when compared to the Binance bridge which had an exchange limit, Hashbon Rocket is preferable as it has no exchange limit.
Hashbon Rocket allows businesses to take payments in a variety of different cryptocurrencies safely and effectively. It also makes it possible for these businesses to transfer their ERC-20 tokens into BEP-20 tokens while retaining the unique characteristics provided by the token issuer.
Low transaction fees, advanced protections to ensure consumers holdings are adequately protected, and positive customer experience, are core features of the Hashbon team.
Many exchanges today have more control over users’ crypto than they should. With Hashbon Rocket, users are in complete control of their assets throughout the entire process.
On December 9 2021, Hashbon FiRe announced that as a fulfillment of its roadmap, the Hashbon Rocket has been enriched by the official staking for BEP-20 HASH holders. Now, users can use their HASH to pull in extra income for themselves.
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