The blockchain bridge integration is gaining ground in the crypto world. Analysts expect it to make the BUSD stablecoin available on the Syscoin blockchain for the first time since its inception.
Binance, a leading crypto exchange announced on July 23 that it plans to use a bridge between Ethereum and Syscoin blockchains to move its in-house Binance USD (BUSD) stablecoin between the networks. It was developed by Blockchain Foundry which is the firm behind the creation of the Syscoin blockchain.
Thus, the BUSD holders can move their coins from Ethereum to Syscoin blockchains and vice versa. This move will also make the stablecoin available on the Syscoin blockchain for its first time. Binance commented:
“Users can take advantage of Syscoin’s fast, scalable, and low-cost transactions; while also preserving the ability to leverage Ethereum’s smart contract functionality. Also, help provide more use cases for BUSD holding users.”
Solution To Ethereum’s High Fees
Ethereum transaction fees have surged to a two-year high due to massive growth in the use of decentralized financial services and many stablecoins. On July 22, Vitalik Buterin highlighted on the current problem and warned that the rising transaction fees may greatly undermine the security of the network.
Syscoin co-founder and lead core developer, Jagdeep Sidhu, believes that stablecoins will mainly be used as a quick method of transferring value across blockchains. Notably, Buterin also pointed out the same use case in May, saying:
“In the specific case of issuer-backed stablecoins there are lots of things that could be done but aren’t; eg. every stablecoin could be an instant cross-chain bridge!”
While commenting on the future, Sidhu said that Syscoin is also “exploring opportunities to integrate with other blockchains.” Specific discussions on this issue are already happening:
“Ethereum was an obvious first choice due to its nature as a proven smart contract platform; and the pressing need for the benefits Syscoin can provide its network, including scalability. Future integrations will be carefully chosen according to the utility value they add to the ecosystem; and how they can benefit adopters such as Binance.”