Polkadot Will Soon Tap Ethereum's Billions with Interoperable Bridge
A bridge between Ethereum and Polkadot wants to let users move all of their assets between the two platforms.
- The bridge will enable any sort of asset – loans, futures, options, etc – to be sent back and forth between the two platforms.
- Polkadot will be able to tap into Ethereum's liquidity; Ethereum will be able to access new users and assets built on Polkadot.
- If successful, Snowfork can tranform DeFi and build the standard for blockchain interoperability.
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Snowfork is building a bridge that will allow tokens, loans, derivatives, and any other asset to be trustlessly transferred between Ethereum and Polkadot. If successful, this could be a catalyst for wider DeFi adoption.
Polkadot’s Interoperability as a Service
A new project called Snowfork is building a general-purpose bridge between Ethereum and Polkadot, allowing both protocols to read any data from one another.
Blockchains that can interact with each other have been touted as the future of the industry for years now. However, most interoperability solutions target the migration of tokens from one blockchain to another.
The Snowfork bridge will enable movement between tokens, but it will also authorize the transfer of loans, non-fungible tokens, derivative contracts, and other assets.
One day in the future, DeFi users may be able to take out a loan on Compound and repay it elsewhere in Polkadot’s DeFi ecosystem. Alternatively, traders could enter an options contract on Polkadot, but settle it on Ethereum.
Projects built on Polkadot will benefit from Ethereum’s billions of dollars of permissionless liquidity. Conversely, Polkadot is attracting builders and shaping its own DeFi hub that could augment Ethereum’s own DeFi stack.
The Snowfork team has split its vision into three distinct phases.
First, a proof of concept and minimum viable product that evidences all of this is legitimately possible. Then, functionality for the Ethereum blockchain to trustlessly read data from Polkadot.
The final phase will allow Polkadot-based blockchains to read data from Ethereum.
The first phase is expected to be completed by mid-September, with the final iteration of the bridge scheduled for March 2021.