So, amidst increasing Ethereum tx fees, dApps and their users are transitioning elsewhere - be it side-chains or other blockchains altogether. I is quite apparent that these other chains will need to bridge their assets to/from Ethereum to increase liquidity within their own DeFi markets (i.e. unlock liquidity interoperability to take advantage of the money in Ethereum). Of course, Centrifuge has already done this with Ethereum, but it seems like a good deal of Ethereum liquidity is moving toward the xDai side-chain.
With that being the case, is it going to be a priority to develop strategic token bridges to increasingly liquid Ethereum side-chains like xDai? Many of you may ask, “Why the heck would we do that?” my answer would be to lower tx costs for applications built across chains (one of those being Centrifuge). It also creates application acquisition opportunities easier for the xDai side-chain and Centrifuge by making choosing at least one of them a no-brainer, given the potential to bridge / move to the other more easily if necessary.
Should we then also consider other layer2 solutions ( fe. Matic)?
Also Eth 2.0 in the end will solve this, but this could take some time…
So not sure in the long therm, although I believe xdai is a very good solution…
So funny enough, Matic uses xDai’s technology as well. With regards to ETH 2.0, I’d be surprised if sharding will work long term as a solution. There’s a really good article that actually poses that sharding just slows down an inherently centralizing blockchain like Ethereum due to (1) issues with plutocratic rule and (2) increasing full node requirements over time.
But point taken - can’t have bridges to everywhere so early in the game
To be honest robtg4, like you said…sidechain is okay as well as a solution to curb the problem of high txn fees on Ethereum. I used it…moved some of my ERC20 tokens using the Xdai bridge and once all of 'em are on the Xdai chain…if I needed to trade it for profit…just simply use Honeyswap to execute it. But it could be better though. I’m not a coder nor a developer…just a regular Joe who loveeeeeees the cryptospace and and took the time to learned how to go around it and not regretted doing it one bit. But for other regular people…let say for example…my grandad…my grandma…who just wanna use it and don’t want to go through all the hoops that I went through…there’s got be a more simpler…easier…straight-to-the-point route in order for them to achieve what they want to achieve.Not only talking about problems on Ethereum but also crypto in general.
@roshid-15 that’s an interesting approach you have with an XDai. I have huge issues with moving small amounts on eth network since fees are of the charts. So idea to move ERS20 to Xdai network is great. Can you have an tutorial of practical movment of erc20 on xdai?
I also like Xdai more then Matic. Matic was supported by Binance if i remember correctly and with that they are for sure more centralized then xDai. I don’t think in that sense Centrifuge is developing in that direction (as to have a bridge too) but if it would, that would be a great benefit to users.
Well…I did it…I mean… transfered my ERC20 tokens to the xDai chain using the xDai bridge literally months ago when the Ethereum fees were not so craaaaazy like now. I’m not sure how high the txn fees gonna be like nowadays especially from the Ethereum side when Metamask wallet gonna asked you to pay in order to go to the other side which is on the xDai chain.But one thing I can tell you once everything on the xDai chain…HEAVENNNNNN!!!. Everything is so freakin’ cheap…I mean txn fees ( trading/swapping on Honeyswap…sending back from xDai chain to Ethereum chain when using the bridge…that is if one wants to…and etc ). Tutorial video on it ? This is where I learned it from…How to use the Omnibridge app and transfer tokens directly into Honeyswap - YouTube. Hope it will help you too.
and wait for the ETH GAS fees go down a bit.