SmartBNB, a Cross-chain Bridge Between Neo and Binance Chain
Safudex today announced the test-net launch of SmartBNB, a cross-chain bridge between Neo and Binance Chain. Using SmartBNB,
tokens can for the first time be transferred from Binance Chain to Neo and back in a completely trustless fashion.Using SmartBNB, new concepts can now be realized. Examples include:
- the use of BNB and BEP-2 tokens to activate smart contracts on Neo,
- the launch of projects that are based on both Binance Chain and Neo, thereby benefitting from the trading functionalities of Binance DEX and the smart contracting functionalities on Neo, and
- the introduction of DeFi applications for Binance Chain-based tokens.
Flora Sun, Director at Binance X, said:
“SmartBNB is a great step forward for blockchain interoperability, enabling token issuers and users to benefit both from the liquidity on Binance DEX and NEO’s smart contracting functionality. The bridge will unlock huge synergies between the two ecosystems.”
How SmartBNB Works
Tokens can be transferred from Binance Chain to Neo by first locking them with custodians on Binance Chain. Upon locking tokens, a proxy version of those tokens is created on Neo. Those (proxy)tokens can subsequently be used on the Neo network. When the user wants to transfer tokens back to Binance Chain, the proxy-tokens on Neo are burned, which unlocks the original tokens. The system is made trustless by requiring custodians to deposit collateral on Neo. In case the custodian misbehaves, this collateral is distributed to all affected users. For their services within SmartBNB, custodians are paid by users. A time-based fee is applicable on all tokens transferred to Neo. Anyone can become a custodian by depositing collateral in the form of GAS in Neo-based smart contracts. SmartBNB, therefore, marks the first time existing Neo users can get a return on GAS held on the Neo blockchain.
SmartBNB has launched on the test-net now! Interested projects, potential custodians and users can learn more about the project on SmartBNB’s website or the project’s Github page, where the entire codebase is open-sourced. A main-net launch is not scheduled yet.
Article Produced By
Safudex B.V. is a Dutch software development studio with team-members in Singapore, the Netherlands, and Malaysia. Prior to Smart BNB, the company launched Neologin, a non-custodial wallet for Neo-based decentralized applications, and the Neo Notification System. Safudex has received a Neo Development Grant and a Binance X Fellowship Grant for its efforts related to SmartBNB.
Heiko Closhen, Entrepreneur