Anticipating Maxi Protocol Token Cross-Chain Bridge On Maxi Protocol DEX
Maxi Protocol is building a decentralized Exchange on Core leveraging the unique and secure Satoshi Plus Consensus. Maxi Protocol is a user-centered Protocol which is exploring every means of developing a stand-alone protocol. One of these efforts is anticipating Cross chain bridge of MAXL token and Bridge feature on its DEX.
What’s Cross-Chain Bridge?
Cross Chain Bridge is a token transfer and other relevant data from one blockchain to another.
In other words, Cross-Chain bridges are protocols that connect different blockchains.
Usually, blockchains don’t support interaction from other blockchains due to different smart contracts containing different commands and codes. With the bridging feature, it makes it possible to interact with other blockchains.
How is it going to work in Maxi Protocol?
Imagine we have two blockchain networks, let’s call them Chain A and Chain B. Each chain has its unique token, like Token A on Chain A, and Token B on Chain B. The decentralized bridge acts as a connection between these two chains, allowing tokens to be transferred between them.
Locking Tokens: To move Token A from Chain A to Chain B, a user initiates a process called token locking. They send Token A to a specific smart contract address on Chain A that is associated with the bridge. The smart contract verifies the transaction and holds the Token A securely.
Minting Tokens: Once Token A is locked in the smart contract, the bridge’s mechanism triggers the minting process on Chain B. It generates an equivalent amount of Token B on Chain B, ensuring that the total supply remains the same. This newly minted Token B is then assigned to the designated recipient on Chain B, typically the address provided by the user who initiated the token transfer.
Burning Tokens: Now, if someone on Chain B wants to send Token B back to Chain A, they initiate a process called token burning. The user sends Token B to a specific smart contract address on Chain B associated with the bridge. The smart contract verifies the transaction and destroys (burns) Token B, removing it from circulation.
Unlocking Tokens: After Token B is burnt, the bridge’s mechanism triggers an event on Chain A, notifying it about the burnt Token B. The bridge’s smart contract on Chain A receives this event and unlocks an equivalent amount of Token A, which was previously locked in the contract. The unlocked Token A is then made available to the designated recipient on Chain A, typically the address provided by the user who initiated the token transfer on Chain B.
Direct example with $MAXL token
1. If you have a token called MAXL on Core Chain which is token A, on chain B, there will be a Wrapped version on MAXL called MAXLx or WMAXL. Both tokens will be equivalent in value.
2. There are 2 approaches where we can lock and unlock tokens on both ends, and either the mint or burn approach. In our context locking and unlocking will be suitable.
3. We will not be minting BNB. Token A will be your token on the Core chain and Token B will be your different version or wrapped on the Smart chain
That’s the purpose of the bridge. You will be able to use your tokens on different chain(s), say Chain A, without having to buy a new token on a different chain, say Chain B, i.e your token will then be a multi-chain and a multi-dimensional token, with various benefits cross-chain and an increase in the overall value.
Note that a token can be bridged on another chain and bear the same ticker, same price, and same supply. This is likely with $MAXL.
Are you excited? You definitely would when you see the implementation of what we are building.
Importance of Bridges
1. Crypto assets produce extra value other than the value on one blockchain.
2. Users leverage opportunities of different chains like better security, cheaper gas fees, faster transaction finality, etc.
3. Developers enjoy liquidity available on different chains.
4. DApps grow faster because users can access them from different chains.
Closing Thoughts
Maxi Protocol has lots of stuff in store to ensure greater utilities and value for its holders and users. This is just the beginning and one aspect. Gaming is also coming up and it’s a huge section on Maxi Protocol.
