Binance uses Syscoin's Ethereum Bridge as an extension solution for BUSD

Binance revealed that it will use the Syscoin Bridge as a tool to overcome the expansion problems of Ethereum and realize the transfer of cheap BUSD stablecoins. The news came when Ethereum fees reached an all-time high, which prompted people to search in-depth for expansion options that might bring pressure and reduce on-chain fees.

The interoperability layer developed by Syscoin and Blockchain Foundry enables ERC20 assets to be traded on the Syscoin blockchain with significantly lower fees and higher throughput.

Bridging the gap between Ethereum's potential and current reality

Many of the touted use cases for Ethereum and the defi ecosystem formed around it are hindered by scale issues. Microtransactions, low-value token transfers, and interaction with Ethereum dApps are effectively prohibited, and the average transaction cost is U.S. dollars instead of cents. Syscoin's Z-DAG (Zero Acknowledgement Directed Acyclic Graph) technology can achieve higher throughput. In tests conducted by the audit company Whiteblock, the technology has proven to be able to maintain a throughput of at least 60,000 TPS. This is a significant improvement compared to the current throughput of Ethereum, which has lower numbers.

As Ethereum's scale problem becomes more and more obvious, other blockchains are also scrambling to position themselves as being more qualified to handle high transaction volumes without a corresponding increase in on-chain costs. Matic Network's plasma-based solution is an option being explored by gaming dApps, which relies on frequent on-chain transactions, and zk-rollups is a temporary solution preferred by Ethereum founder Vitalik Buterin.

Syscoin Bridge takes a different approach, establishing a two-way channel between Syscoin and Ethereum, allowing ERC20 tokens to surpass the chain of issuance. The key difference between Syscoin Bridge and similar interoperability solutions is that Syscoin's channels do not need to custody assets on one chain like WBTC to release assets on another chain. Therefore, Syscoin Bridge supports simplifying the definition of trustless transactions while enabling users to always retain control of their assets. As Dan Wasyluk, CEO of Blockchain Foundry and co-founder of Syscoin, explained: “The Syscoin Ethereum Bridge is designed to help Syscoin provide the advantages of fast, scalable, and low-cost transactions to other blockchain platforms. currency."

Ethereum is a victim of its own success

Ethereum cannot be expanded, which prevents Ethereum from being redefined as a Defi ecosystem suitable for supporting dApps, DEXs, liquidity pools, synthetic currencies, loans and stable currency issuance. The result is a large number of failed transactions, increased gas usage, and bursts of memory pools. Now more than one million Ethereum is transferred through smart contracts every day, and it is close to the highest level in history.

Convincing developers and users to attract other blockchains that lack the network effect of Ethereum is a big problem. Interoperability solutions such as the Syscoin Bridge allow Ethereum people to eat cakes and enjoy the access to ERC20 tokens they need in a less crowded environment. However, in the process of persuading the Ethereum community to take risks, Syscoin's work will be cut. The news that Binance is studying Syscoin Bridge as a tool to transfer BUSD will strengthen its position as an alternative to Ethereum chain transactions.

Syscoin

Founded in 2014, Syscoin is one of the earliest crowdfunding projects in the blockchain field. Before Ethereum introduced the formal 1C0 market, it was supported by early Bitcoin technicians and enthusiasts. It successfully launched its first mainnet in the same year.

Since then, it has achieved many notable milestones, including developing the first truly decentralized DAG network, becoming a founding member of the Microsoft Central Organization Identity Authentication Foundation, and joining 2Tokens as a technology partner.

Syscoin is now represented by the Syscoin Foundation, which is led by Jag Sidhu, the lead core developer.