In a world where blockchain interoperability is becoming more relevant each day, LeoBridge plays a significant role in connecting Hive to other networks
With all the (much deserved) attention that PolyCUB is getting after its successful launch a few days ago, it's easy to lose track of all the great things that are being created with it.
LeoBridge is an easy and safe way for Hive users to interact with projects on the Ethereum Blockhain, Binance Smartchain and, in the future, other platforms that will be added as CubFinance evolves to encompass other networks.
What are blockchain bridges, and why are they important?
To put it simply, without delving into the technical aspects, a blockchain bridge connects two different blockchains and allows users to send tokens from one chain to another so, for example, if you have some BNB on Binance Smart Chain and you want to buy some LTC on the Litecoin Blockchain you can use a bridge to do so.
Even those who are new to crypto have probably realized that nowadays, we have a variety of different blockchains with different objectives, characteristics and use cases. The problem is they were not necessarily designed to work well with one another. That's why bridges are so important.
Blockchain bridges make it much easier for someone to participate in projects built on different blockchains. From the user perspective, a good bridge makes sending tokens from one chain to another as easy as a click of a button, but on the backend of things, there are many things going on. Of course, it is possible to move things around without a bridge, but the number of operations involved can make the process very time-consuming and more expensive due to the fees involved with each transaction.
Hive users are very spoiled in that sense because we have this excellent blockchain that is very fast and feeless. Combine that with the large number of dapps being developed daily, and you'll see that being restricted to the Hive network wouldn't be so the worst thing in the world.
However, as great as Hive is, the world of blockchain and cryptocurrency is vast and full of opportunities, and that's why the way forward seems to be blockchain interoperability. Thanks to the LeoFinance team, we've got that covered with this great product called LeoBridge.
LeoBridge - LEO backed Interoperability
LeoBridge is the LeoFinance solution to permissionless cross-chain token swaps. It's an easy way to do ERC20->BEP20 cross-chain swaps, and that's just the beginning!
The current roadmap for LeoBridge is as follow:
This is exciting as it is, and I'm sure that as CubFinance expands to other networks, so will LeoBridge. In the future, all major blockchains will be connected by it.
How does it impact Hive?
As I said before, there are a lot of things going on the backend to allow a simple ERC20->BEP20 cross-chain swap and the LeoFinance tokenomics is vital for that.
When a user performs a transaction like that, what LeoBridge does on the backend is something that looks like this:
That really shows how native LEO and its wrapped versions (wLEO, bLEO, pLEO) are essential for the process. This is yet another use case for the token, and it's a HUGE one. LEO is Hive's connection to the "outside" world, which, in my opinion, is something that's overlooked by many.
CubFinance's recent expansion to Polygon through PolyCub has been a great success, and it's only the beginning. I'm not qualified to provide financial advice, so do your own research, but I honestly believe that once LeoBridge consolidates itself as one of the best options for cross-chain operations, LEO will explode.
Final thoughts
LeoBridge has a lot of potential to become the link to all major blockchains, and when that happens, LEO will become an invaluable asset since it's one of the building blocks that allow it all.