What Investors Need to Know About the POA Bridge
Recently, the POA team announced that the much-awaited POA Bridge is set to be inaugurated on May 10, 2018. This launch will be historic, as the project is the world’s pioneering cross-chain Bridge in the blockchain sector. This innovative feature will facilitate the seamless transfer of POA tokens to and from the Ethereum network.
The POA Bridge
Essentially, the POA Bridge is a DApp built on the POA blockchain, but it differs from previous releases in that has unique functionalities. It acts as the ‘bridge’ which enables the fast, affordable and dependable transfer of POA tokens form their native blockchain to the Ethereum blockchain. The transfer turnaround time is less than five minutes, and the service will not levy any fees during its trial period.
During the transfer of POA tokens to the Ethereum network, a new utility token known as POA20 token will be minted on the Ethereum blockchain. Similar to its older sibling, the POA20 token will also be transferrable over the POA Bridge.
The POA20 Token
The POA20 token will bear all the distinctive characteristics of an ERC20 compliant utility token. Therefore, it will be usable in all outlets that are compatible with the ERC20 protocol. Thus, users with wallets that support ERC20 tokens can freely use POA20 in place of or in combination with their current ERC20 tokens.
Notably, the minting of POA20 does not imply that additional POA tokens will be released. The total supply will remain as it is, with the only change being its distribution over two different blockchains.
Benefits Of The POA Bridge
Undoubtedly, traders stand to gain the most advantages from the establishment of the POA Bridge. First, it will boost the efficiency and speed of their operations. Second, the bridge will connect the POA token to an even larger audience, substantially increasing its liquidity in the process. Lastly, being a trailblazing invention, this project will set a precedent which future projects will seek to emulate. POA Bridge might be the first, but the potential developments that will follows this blueprint are endless.