Ethereum Tokens Coming to Tezos, Thanks to WRAP Protocol

Ethereum Tokens Coming to Tezos, Thanks to WRAP Protocol

Ethereum tokens will now be available on Tezos thanks to a new development by Bender Labs. This will be done through the release of the WRAP protocol which is a bridge protocol from Bender Labs and is hoping to contribute towards a more open financial system.

What this means is that ERC-20 and ERC-721 tokens from the Ethereum blockchain can now be transferred into the Tezos blockchain as FA2 tokens. Bender Labs specializes in creating DeFi platforms and thus, WRAP acts as a decentralized bridge between various blockchains. 

UnWRAPing New Concepts

The biggest benefit of this new development is that users of both platforms will be able to wrap their tokens. Wrapping, in this case, refers to getting representations of ERC-20 and ERC-71 tokens on the Tezos blockchain while still maintaining a pegged value to the original tokens.

This means that token conversions do not need to take place and instead, transactions can be carried out seamlessly. WRAP, which is the native token of the ecosystem, is both an ERC-20 and FA2 token and this makes it operable on both platforms. 

According to the management of Bender Labs, the purpose of this new partnership as well as their general mission statement is to create a world in which digital assets are always interoperable and can be used across various platforms with ease.

“We’re building Bender: a self-driving bank for an open financial system because we believe that financial markets should be open, transparent, unstoppable, and rely mostly on lines of codes rather than intermediaries.,” said Bender Labs CEO, Hugo Renaudin.

Overall, the creation and use of bridge protocols will help further the goal of creating a perfectly open financial market. Current DeFi ecosystems like Ethereum have a number of issues such as the high gas fees as well as concerns about its impact on the environment. With this new development, however, Ethereum users can make use of the Tezos network which has fewer environmental issues and has lower prices.

Ultimately, bridge protocols and resources like WRAP will go a long way to further connect the cryptocurrency industry. The benefits of one blockchain can be enjoyed by the users of another with ease and without having to convert their tokens. This is not only a very innovative prospect but one that is much needed as the industry matures.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Bitcoin Has Entered Into The Early Bull Phase — Crypto Pundit Avers

Ki Young Ju, the CEO of data analytic firm CryptoQuant is convinced that Bitcoin is on the cusp of a major lift-off as crypto traders continue to switch from a risk-off to risk-on mode. Earlier yesterday, Young tweeted that Bitcoin had “entered into the early bull phase”, suggesting that the top cryptocurrency by market capitalization

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year

Goldman Sachs has ranked bitcoin the best-performing asset so far this year. The cryptocurrency also tops the global investment bank’s list as the asset with the highest risk-adjusted return — above gold, real estate, the S&P 500, and the Nasdaq 100. Bitcoin Outshines Other Investments on Goldman’s Chart Global investment bank Goldman Sachs has reportedly

Global Digital Cluster Coin (GDCC) Is Now Available on LBank Exchange

PRESS RELEASE. LBank Exchange, a global digital asset trading platform, has listed Global Digital Cluster Coin (GDCC) on January 27, 2023. For all users of LBank Exchange, the GDCC/USDT trading pair is now officially available for trading. With its new-age protocol and peer-to-peer network, Global Digital Cluster Coin (GDCC) restructures the concept of money and