SINOVATE to Bridge its Mainchain with Ethereum and Binance Smart Chain
One of the most innovative blockchain dCloud storage providers, SINOVATE, is set to enter the DeFi paradigm with its latest update, Betelgeuse. The highly awaited release seeks to bridge its mainchain with Ethereum (ETH) and Binance Smart Chain (BSC). Fundamentally, a Smart Contract, this bridging will enable transactions to operate smoothly from one blockchain to another.
SINOVATE is a pioneer in the decentralized cloud space, implementing cutting-edge technology in blockchain and data management. Starting from the InfinityNodes technology to provide a reliable infrastructure for blockchain-based data storage, SINOVATE is also eyeing a hybrid consensus protocol with an up-gradation of its codebase to Bitcoin Core 0.22 for block validation enhanced security, efficiency, and scalability. The next milestone offering on-chain data storage for expanding SINOVATE-empowered solutions is ready to provide users with efficient decentralized Cloud infrastructure.
Why is SINOVATE entering the DeFi paradigm?
The pathbreaking technological innovations that SINOVATE is developing in-house require a new audience that can invest in and use novel infrastructural solutions. DeFi, short for Decentralized Finance, focuses on the recreation of traditional financial instruments in a decentralized architecture and offers the perfect prospect for the next-generation cryptocurrency expansion that SINOVATE is eyeing.
What is DeFi?
DeFi can be visualized as a massive open network of adaptive blockchain-based components such as protocols, digital assets, dApps, and Smart Contracts. Developed in 2018, with the expansion of the Ethereum ecosystem, this new digital finance technology omits the need for any central authorities, exchanges, or systems. The only components of a successful DeFi system are a blockchain and a dApp to connect participants using smart contracts for network interaction.
Today, DeFi has grown into an inevitable mainstream financial model for several existing and new crypto projects. It has evolved from a few simple transfers to highly complex economic use cases that which investors and traders can carry out conventional operations such as banking, trading, and insurance.
How SINOVATE Plans on Bridging with ETH and BSC
SINOVATE bridging with ETH and BSC is essentially a smart contract enabling transactions to operate from one blockchain to another. On the other hand, DeFi operates “mainly” with a Smart Contract hosted by a blockchain for creating a wrapped token by the Smart Contract of ETH or BSC.
A wrapped token is pegged to the value of its original cryptocurrency, currently equivalent to 1 original coin/token and mainly minted by the smart contract. The proposed bridge connects SINOVATE with ETH and BSC ecosystems, where ETH and BSC have their own wrapped tokens. However, a wrapped SIN will not be available for use as a SIN coin directly on the SINOVATE blockchain for building your InfinityNode, storing your data, or staking. Similarly, SIN coins cannot be used as an ERC-20 or BEP-2/BEP-20 token on those platforms.
Nonetheless, SINOVATE believes that this bridge can be exploited for multi-chain solutions using dApps, which will facilitate SIN coins and wrapped tokens in ETH and BSC environments in the future.
Exploring the Benefits of SINOVATE’s dCloud Ecosystem
With DeFi set to become a significant component of SINOVATE’s ecosystem, users and contributors would have easier access to its decentralized cloud, services, and applications. “Bridging SINOVATE with ETH and BSC will allow users of these ecosystems to enjoy SIN coins and their usage,” SINOVATE stated in their press release.
“SINOVATE DAO wants to offer a sustainable and user-friendly environment by integrating the SIN coins in the decentralized exchange (DEX) platforms using automated market makers (AMM).” At the same time, the connection between SINOVATE’s mainchain and ETH-BSC platforms will open the former’s disruptive technologies to a broader audience pool. This will inevitably lead to more partnerships and unprecedented financial and data-storage-based dApps backed by SINOVATE’s innovations.