THE NEXT CHAPTER IN NEWSCRYPTO DEVELOPMENT
We’ve decided to kick the year off with one of the most groundbreaking improvements in the history of NewsCrypto, namely a cross-chain swap for our NWC token, making it available on Ethereum and the Binance Smart Chain, along with its native blockchain Stellar.
It’s hard to overstate the significance of this upgrade, in terms of both utility and the potential for future adoption and exchange listings.
WHAT IS CROSS-CHAIN INTEROPERABILITY?
If you’re new to crypto, you might be wondering what a cross-chain swap even is and why it’s important. Given the way that blockchains work, a token is usually only available on a single blockchain, and it’s impossible for a token on one blockchain to interact with any token or protocol on another chain.
You might have noticed this given the fact that different chains have wallet addresses that don’t resemble each other at all; effectively, it’s as if different blockchains are different dimensions of reality, completely isolated from each other.
This is a problem, however, since the very reason that different blockchains exist is that each has its own pros and cons. One blockchain might have lower fees than another, which in turn has better smart contract capabilities and more adoption etc.
In this case, being able to transfer a token from one chain to another would be a huge advantage, and that’s precisely the problem that we set out to solve with this new improvement. Through our cross-chain swap, which will soon be available on our website, it will be possible to swap between the Stellar, Ethereum and Binance Smart Chain versions of NWC with a single click.
This swap will be implemented by means of a smart contract, meaning that it will be fully automatic and will execute swaps almost instantaneously (being limited only by the transaction times of the sending and destination blockchains).
WHY IS THIS A BIG DEAL FOR NWC?
Ethereum is undoubtedly the number one blockchain for decentralized finance (DeFi) and smart contracts in general, and plenty of similar projects are sprouting up on BSC as well.
This means that NWC will soon become available on decentralized exchanges (DEXes) such as Uniswap and lending/borrowing protocols such as Compound and Aave. These dApps (decentralized applications) are growing rapidly, with Uniswap’s daily volumes regularly exceeding $1B, and the total volume locked in DeFi above $20B.
The way that DeFi lending protocols work is that a user that wants to get a loan in one token (e.g. USDT) deposits another token as collateral (e.g. ETH or, in the near future, NWC). That way, they can acquire fiat or stablecoins without selling their crypto. When they return the loan plus interest, they get the collateral back. This is a much better option than selling crypto when the user expects that its price will go up.
If you’re wondering how to use the cross-chain swap in practice, the process is very simple. As soon as the swap goes live, there will be a link to the swap right on our website. To use it, you will simply need to choose the sending and destination blockchains, input the destination wallet address and the amount to send, and then send to the address that will appear on your screen.
Just like that, you will be able to swap between completely different blockchains and be part of this revolutionary breakthrough that will open the door for NWC to expand far beyond its current scope.
Whether you want to stake NWC on our platform on Stellar, use it as collateral on Ethereum lending and borrowing platforms or trade it on a BSC DEX, all of this will be possible with just a couple of clicks!
NWC Crosschain will be live really soon!
Thank you for your attention!