Dfinity’s Internet Computer Launched An Ethereum Bridge

Dfinity’s Internet computer launched an Ethereum bridge so now all assets can exist thanks to the new addition so let’s read more today in our latest Ethereum news.

A new cross-chain bridge connecting Ethereum with Dfinity’s Internet Computer will allow for ERC20 tokens to existing on the latter’s network according to the developers behind the bridge. Internet computer is a blockchain that is created by the Dfinity Foundation o help facilitate a decentralized layer of web infrastructure and it is backed by prominent funds like Polychain Capital and a16z.

Called Terabithia, the bridge enables cross-chain contract communication and transfers across other chains. It is built on a forked version of the Ethereum scaling solution StarkWare and will enable the contracts on the chains to communicate and to allow anyone to mirror and to use the Ethereum assets on Dfinity’s Internet Computer and vice versa. The bridges allow blockchains to exchange data, tokens, or smart contract instructions and these operate independently for the rules or consensus mechanisms or whichever it is that blockchains are going to connect to.  The founder of Psychadelic, Harrison Hines noted:

“Similarly to how Ethereum extended the functionality, usefulness, and value of Bitcoin, we believe the Internet Computer has the potential to do the same for Ethereum assets and applications, and could even potentially become the best L2 for Ethereum long term.”

The bridge came ahead of the Internet Computer native Ethereum integration allows interoperability between the two chains. The integration will allow for the smart contracts to hold ETH assets on Ethereuma and make calls to them but will not allow ERC-20 assets to exist directly which is why the bridge could help solve this problem. The porting assets between ICP and Ethereum can create liquidity and complementary products for the user base of the two blockchains like NFTs and other Defi products.

The Defi protocols rely on smart contracts rather than third parties to provide financial services like borrowing and lending. The Internet computer launched in 2021 with a reverse gas model will focus on scalability. The model sees developers supply the funds needed to run the applications that use their gas as a fee paid to use the blockchain. The response among investors is less than tepid as the tokens of internet computers dropped 97% since their issuance in May amid reports of alleged insider trading and large token holders that exit their positions. The tokens have a market cap of $5 billion and they are down by 72% from May’s $18 billion figure.