POA Network Launches ERC20-to-ERC20 TokenBridge

POA Network has kicked off its ERC20-to-ERC20 TokenBridge. While this represents a crucial initial move towards the direction of cross-chain interoperability, the POA Bridge enables users to convert tokens indigenous to POA with Ethereum’s POA20 tokens. On the other hand, the new TokenBridge is applicable to any Ethereum-based ERC20 token; it also allows all networks created on Ethereum to interact with one another.

Ethereum-based platform POA Network rolled out its POA Bridge last May, which enabled customers to convert POA tokens on the POA Network to POA20 tokens on Ethereum. The team behind the platform stated that “this was the first milestone in [its] long-term vision for blockchain interoperability.”

POA, which is an Ethereum sidechain, wants to make the implementation of smart contracts “easier, cheaper, and faster.” The POA Network, which also features an open-source smart contract structure, is unique compared to other chains in such a way that it uses a “proof of authority” consensus mechanism, a variation of proof of stake. The POA tokens in the network are actually POA20 coins on the Ethereum.

With regards to transaction validation, POA states that each initiative will “account” for its own validators. The team adds:

“It’s absolutely necessary for the project(s) [deploying the bridge] to identify the set of individuals/nodes assigned to validate the bridge transactions.”

POA also presents other use cases for the new TokenBridge. One of them is Swarm City, a decentralized commerce platform that utilizes the bridge to bring tokens from Ethereum to the Kovan testnet. One Swarm City designer underscores that performing transactions on the bridge and later settling them on the mainnet “keeps transaction costs down.”

Decentralized poker platform Virtue Poker, which also uses the bridge, claims that it permits the team “to eliminate costly on-chain Ethereum transactions in relation to hand result data.” Virtue Poker goes on to say:

“This will minimize Ethereum gas costs by only requiring main network transactions when a player wishes to enter and exit our sidechain via the POA bridge.”

POA is currently in collaboration with other projects to introduce its bridge as the answer to astronomical gas prices and network congestion. In addition, the team has developed step-by-step instructions, which is accessible through GitHub, for individuals seeking to use the TokenBridge.