IOV Labs, the parent company of the Bitcoin-based contract platform RSK, has released a new token bridge for Ethereum.
The announcement was made on Wednesday, reported by Coindesk, and mentions that the bridge will permit clients to,
“Cross RSK and Ethereum-based digital assets, ERC-20 tokens included, across protocols.” per Gibraltar-based developer IOV Labs. And “When a user transfers tokens, the bridge's smart contract locks the originals and mints a corresponding amount of new tokens on the other chain.”
This system allows Ethereum-based tokens to be transformed into RRC20 tokens, which are RSK’s, which can conversely be turned into ERC777 tokens from Ethereum.
Interoperability Protocols Make Operations on Different Blockchains Easier
Interoperability protocols are known for making projects less complicated to work on individual blockchains. Apps or dapps that are decentralized can accommodate to a larger variety of clients. If not using dapps, these users would be stuck in networks that are closed. Besides, dapps help projects leverage some specific characteristic of blockchains at the same time. This is what the RSK strategist for IOV Labs, Adrian Eidelman, said about the RSK interoperability bridge:
“Interoperability has been a cornerstone of the RSK vision from the start. We believe being able to offer Bitcoin’s benefits to Ethereum users and to connect these respective developer communities is a crucial step for the blockchain ecosystem as a whole.”
Wanchain's 2018 Token Bridge for BTC and ETH
The RSK interoperability bridge is not the only one of its kind, as Wanchain released a token bridge between Bitcoin and Ethereum back in 2018. However, Eidelman explained that Wanchain acts as an intermediary between the blockchains, whereas RSK actually combines the networks and allows the leverage of strengths for both ecosystems. The Money on Chain Bitcoin protocol utilizes the RSK bridge for navigating the stablecoins onto the Ether ecosystem.
Its co-founder, Max Carjuzaa, mentioned interoperability is going to combine the global recognition and security of Bitcoin with Ethereum’s vibrant DeFi ecosystem. In September 2019, IOV Labs mentioned something about integrating RSK tokens into Taringa, the company’s newly acquired social media network. More information about the new interoperability bridge will be launched soon, said an IOV Labs spokesperson.