Easily Transfer Tokens Between Blockchains With AllBridge [Solana Series]

Michael 0:00
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Did you know that the SOL token from Solana a year ago today was about $1.70 per token $1.70 While the crypto market is exploding and has this year and will continue to in this upcoming year. Today’s episode is another one in the Solana series. And it’s all about easily transferring tokens between blockchains with Allbridge. So let’s jump in today’s episode. What is Allbridge? Allbridge is a modular and expanding token bridge with on chain consensus. It’s a simple, modern and reliable way to transfer assets between blockchain networks. A blockchain bridge is a connection that allows tokens and data to be transferred from one chain to another. Both chains may have different protocols, rules and governance models. But the bridge creates a reliable mechanism for both chains to inter operate. There is a lot of diverse Bridge designs, but they may generally be classified into two categories, more centralized bridges that rely on trust or federation and more decentralized trustless bridges.

Allbridge’s mission is to make the blockchain world borderless and provide a tool to freely move assets between different networks. In the future, it will evolve into a Dao style multi chain hub, establishing connections between the EVM and non EVM networks. Everybody can add a token to the Allbridge via a special interface. Users and holders can stake that ABR token and add other tokens. Also holders have ability to move tokens to a different blockchain. So let’s break down some of the benefits and features. The on chain consensus: what makes Allbridge so unique is the fact that it uses an on chain consensus. Typically, a bridge consists of a smart contract, a network of Oracles and a smart contract on the destination blockchain used to accept the input from active Oracles and mint new tokens to the recipients. By the way, if you haven’t listened to my episode all about what are Oracles in crypto? Definitely listen to that one after this one and it will really help you. However, there is a belief that an Oracle consensus should be reached on chain. And this is exactly why the proof of concept launches first on Solana as on chain consensus would require a fast blockchain with tolerable transaction fees.

Let’s break down the system transparency in addition to stability on chain consensus provides an overall system transparency. Every validator transaction for every transfer can be verified with the help of a regular block Explorer. And if something goes wrong, it can be identified immediately. A separate block Explorer will be implemented to monitor bridge transfers. By the way, Allbridge also has modular architecture. Not all blockchains are created equal, some are not so widespread, and others are quite expensive to operate. And all are welcome on Allbridge. Validators can pick and choose which blockchain they want to support in blockchains can incentivize validators for better coverage. They also have the single signature method. While the majority of validators have to confirm bridge transactions, only one signature from one validator is enough to make a transfer. This is achieved by validators checking not only incoming but also outgoing transactions in the networks they support.

Let’s break down the activity monitoring Allbridge also uses activity monitoring to generate periodical reports to the systems contract, tracking the support of a selected blockchain by validators this way the number of active validators for every blockchain can be aggregated to identify the major or majority needed for support, and there’s also low bridge fees. A bridge fee is a fee that a user pays for each bridge transfer. A bridge transfer requires two transactions. Send the transaction on the source chain and receive a transaction on the destination chain. The bridge fee is a fee paid with the send transaction. And the bridge fee does not include a gas fee. This fee is paid in the same token that the user transfers. And by the way, bridge fee is 0.3% from the transfer amount. So let’s break down the freedom. At the center of the Allbridge philosophy lies the freedom for users to go invest and engage in blockchain projects whenever they please.

As blockchain grows and grows, there’s an equal need for interoperability and the freedom of movement while searching for greater functionality. So I should cover the token, the Allbridge token, its… ticker symbol is A-B-R and it’s the native token of the platform. And the token is used to it’s used as a transaction fee on the platform. Also for staking. It’s used as a fee for projects to register bridges on the platform. And you can own the ABR token by buying those tokens on exchanges like Uniswap, Raydium, or Orca. So I hope today’s episode has definitely painted you somewhat of an overview about what is Allbridge, maybe you’ve never heard about this project before. Maybe you’re just curious to know, I know it was a little bit more technical. But as you grow in in your understanding and depth of the crypto world, this will help paint an overall picture and that’s what I’m really striving and working on is to provide an overall picture of all the different facets in crypto for you. So if you like today’s episode, definitely like and subscribe to the podcast, share this episode on social media, and chime in here tomorrow for another special episode. If you’d like to reach out to me, you can email me at show@newtocrypto.io. I’m always interested to hear about requested episodes that people would like or feedback about the show, etc. I’ll see you here tomorrow. Make it a great day.

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