The multichain infrastructure network Biconomy has officially launched its Hyphen mainnet and created the conditions for immediate low-cost token transfers via blockchains such as Ethereum and Polygon.
With the introduction of Hyphen, users can make almost instant USD Coin (USDC) transfers between Ethereum and Polygon instead of waiting 30 minutes or hours as is currently the case with wire transfers. Biconomy can facilitate quick transfers by maintaining and rebalancing token liquidity on both sides of the chain, the company said Tuesday.
Biconomy’s Chief Technology Officer, Sachin Tomar, explained the challenges that exist for cross-chain transfers:
“On average, it can take users anywhere from 40 minutes to 7 days to get their money to move funds from Layer1 to Layer2 blockchains […] “More precisely, it currently takes around 40-50 minutes to get ERC20 tokens from the Polygon network to Ethereum via your native bridge.”
In his view, these challenges lead to weakened network effects and result in a more difficult experience for the user. “Hyphen solves this problem,” he said by enabling developers to offer value transfers between Ethereum virtual machine networks, various layer two solutions and sidechains.
Future iterations of the Hyphen network will be completely decentralized, Biconomy said in a Twitter post.
As we develop and improve Hyphen, we will fully decentralize the infrastructure across all supported networks.
Before long, anyone could be providing liquidity, acting as a node, and contributing to the minutes!
Stay tuned for more information!
– Biconomy (@biconomy) August 10, 2021
Biconomy recently closed a $ 9 million private funding round jointly led by DACM and Mechanism Capital. To date, the company has raised $ 10.5 million from private investors and processed over $ 570 million in transactions.
With the cryptocurrency market showing signs of life again, the demand for cross-chain swaps is likely to increase, especially as decentralized finance (DeFi) grows in popularity. Platforms like Polkadot and Celer continue to place great emphasis on cross-chain integration and interoperability, with more developers coming on board to further this vision.
Related: A future with multiple chains will accelerate innovators and entrepreneurs