The latest cryptocurrency news show that the stablecoin Tether is ready to launch a new wrapper project named pTokens for the EOS-Bitcoin interoperability bridge. If you are new to this, interoperability basically means promising when it comes to eliminating data-sharing challenges.
Between two blockchains, interoperability boosts up the momentum of the activities of the blockchain. This will help bringing in more people together in the world of decentralized finance (DeFi).
#Tether is set to🚀launch its new token wrapper project pTokens to develop an #EOS–#Bitcoin interoperability bridge.
According to #Bitfinex and Tether CTO #PaoloArdoino, this will enable cheaper and⚡️faster #USDT transactions from one chain to another.#Tokenncoin #CryptoNews pic.twitter.com/ULVyn8Wzsk
— Tokenncoin (@Tokenn_coin) April 27, 2020
According to many experts, this is a good move which will show a lot of benefits in the future. Tether is ready to launch the pTokens initiative and the “crypto expert” Sydney Ifergan also commented the news recently and said:
“An Interoperability bridge between EOS-Bitcoin from Tether via pTokens is good because it helps transfer value easily between the two inherently different blockchains.”
Meanwhile, anytime a token leaves its native blockchain, the bridge will do the job of locking it and issuing similar value to the partner blockchain which is bridged. This helps it sustain a constant supply.
The pTokens in this case focus on unlocking the cross-chain liquidity for the entire crypto market, thereby helping all cryptocurrencies and blockchains by becoming compatible with decentralized finance tools.
As Tether is ready to launch pTokens, the EOS news show that this system helps in enabling the assets to be moved from their native blockchain to a different host blockchain. This is why the value is pegged in and then pegged out. The pTokens system locks the underlying asset and provides a 1:1 pegged tokenized version of the value of the host blockchain.
A tweet from Paolo Ardoino in the past shows how the analyst predicted a system like this.
2020 will see many cross-chain gateways being ready for production use.
Liquidity will be split among many many many different solutions, making hard to really use them and accepted by exchanges.
Only solutions that have a great coverage of the most used chains will have a shot
— Paolo Ardoino (@paoloardoino) November 21, 2019
The pTokens basically make unlocking cross-chain liquidity an easy process, making it good for mass adoption and improving the user experience in DeFi. The peg in and peg out friction is minimized, and this is a powerful method to make any token portable. This is why portable assets are expected to unchain liquidity in the future.
The story of Tether (USDT), as Ardoino noted at the Crypto Compare Summit last month, is on the Internet for those who are interested.
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