What is cross-chain? Guide to swift cross-chain transactions with 3S Wallet
- What is Cross-chain?
- How Cross-chain works
- Pros and Cons of Cross-chain
- Swift Cross-chain transactions with 3S Wallet
- About 3S Wallet
The crypto market is growing and expanding, and over time we have seen the launch of new ecosystems on different blockchain networks. From there, the need for blockchain interaction between ecosystems is necessary to scale the development of DeFi. Cross-chain was born to help solve the need for interoperability between blockchains. In this article, BHO Network will provide you with information about what Cross-chain is, and how to do Cross-chain transactions swiftly with 3S Wallet.
What is Cross-chain?
Cross-chain is a solution to help transfer coins/tokens or assets/data from one blockchain to another, to create interaction and connectivity between blockchains.
How Cross-chain works
As we all know, each blockchain network will have a different and independent structure, so the interaction between blockchains will be limited.
It is as simple as using currency in each country, for example, in living in the US, it is difficult to spend VND and vice versa in Vietnam, it will not be convenient to spend US dollars (USD). Therefore, there will be banks acting as intermediaries so that people can exchange money before moving abroad.
Likewise, the main activity of Cross-chain is to be able to move coins/tokens between blockchain networks. However, due to working on blockchain, when converting we will need to wrap coins/tokens or data in this network into coins/tokens or data in another network that can be used as follows:
- Users deposit or swap their tokens into a smart contract on the original blockchain.
- An equivalent amount of coins/tokens will be minted on the target blockchain and withdrawn to the user.
- To switch back to the original ecosystem, users deposit minted assets into smart contracts on the target blockchain. These coins/tokens will be burned and the initial assets will be released on the original source blockchain.
This method ensures a constant supply of tokens across all platforms.
Pros and Cons of Cross-chain
- Interoperability: Obviously this is the first advantage that Cross-chain brings. Cross-chain solutions will help blockchains communicate with each other. From there, it will combine the power of platforms to help bring a more complete blockchain technology solution to users.
- Easier creation of liquidity: Thanks to the interoperability between blockchains, a large amount of liquidity can be created easily and quickly while moving in different blockchain platforms.
- High practical application: When blockchains can interact with each other easily, the exchange and transaction between tokens will become faster and simpler than ever.
- Incomplete Solution: Currently, the cross-chain solution is still in development and unfinished. The communication between blockchains just stops at token trading/swapping.
- Many security holes: Since applying the cross-chain solution to building bridges and allowing token trading/swapping, there have been many multi-million dollar hacks. Most hacks do more damage to bridge developers than users. Hackers have successfully exploited security holes, multi-signature compromise or smart contract vulnerabilities, implementation errors to attack asset bridges.
Despite some of the above disadvantages, we can see that the individual blockchains themselves are also in the process of developing and overcoming outstanding problems. Therefore, for the cross-chain solution to be fully developed and applied in many areas of life, there is still a long way to go.
Swift Cross-chain transactions with 3S Wallet
Normally, when you want to transfer coins/tokens from one blockchain network to another, you will have to use a cross-chain bridge as follows:
- You need to open the cross-chain bridge platform.
- Then choose to connect the wallet to the bridge (cross-chain bridge).
- Select the target network you want to convert.
- Do the conversion.
- Check the coins/tokens on the target network.
BHO Network presents you with a way for swift cross-chain transactions through 3S Wallet. With 3S Wallet, your crypto wallet has built-in cross-chain transactions (inter-network transactions).
From the main screen on the 3S Wallet interface, select [Transactions], then switch to the [Cross-chain] tab.
You just need to select the destination network and trade right in 3S Wallet without connecting to any other cross-chain bridge. After trading, the coins/tokens will automatically transfer to the new network with just one action and you can check right in 3S Wallet.
About 3S Wallet
3S Wallet is a cryptocurrency wallet - one of the important components of the BHO Network ecosystem, used to support individuals or organizations to store, exchange, encrypt transactions and other activities.
In particular, 3S Wallet supports fast cross-chain transactions with just one click right in the wallet app, making it fast, convenient and safe to use.
Besides, 3S Wallet is a multi-chain wallet so you can easily connect to most dApps on Ethereum, Binance Smart Chain, Polygon, Fantom, Avalanche, Optimistic, Arbitrum, Cronos, Solana, BHO Chain networks, etc.
Above is the information about Cross-chain transactions that BHO Network wants to provide to you. Hopefully with this information you can make cross-chain transactions quickly, easily, and safely with 3S Wallet.
Published on September 30, 2022
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