22 August,2022 10:53 AM IST | Mumbai | BrandMedia
These cryptocurrencies existed independently, and there was hardly a need for multi-chain interaction.
The advancement of the crypto ecosystem and the world of DeFi has triggered advancement. There are hundreds of blockchain networks and thousands of different cryptocurrencies. All these cryptocurrencies have different features. More so, crypto holders usually have diversified portfolios. This diversification has called for multi-chain compatibility.
Some established protocols like the Polygon network were built for just one chain. However, VertoChain (VERT), one of the latest cryptocurrencies with massive potential, was built with multi-chain compatibility.
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Polygon was developed by JayntiKanani, Sandeep Nailwal, and Anurag Arjun. The entrepreneurs and developers had the goal of scaling the Ethereum network. The protocol allows developers to create optimistic rollups, ZK-rollups, and side chains to build projects.
Since its inception, it has served its purpose as an Ethereum scaling protocol. However, the Polygon network only supports the Ethereum base chain. While community members of the Polygon network have proposed support for other L1 blockchains, that transmission is yet to be implemented. Thus, at the moment, only Ethereum fans will find the Polygon network useful as a scaling solution.
Unlike Polygon, VertoChain is not restricted to a sole layer one blockchain. The VertoChain platform will support multiple tokens. Although the VERT token is a BSC-20, the VertoChain team is currently working on support for the token on the Ethereum network, Solana network, and two other networks.
The multi-chain support of VERT will make it easy for users to swap and transfer assets on the protocol. Users will also be able to swap from one token standard to another on VERT pools. The swap fee will also be minute, costing less than Dollar 0.25.
Synthetix is a blockchain protocol that exposes individuals to crypto assets without users needing to purchase the asset. It is different from other DeFi and CeFi protocols where users can actually buy the asset.
Synthetix uses oracles to determine the prices of assets at a specific time. The price of the token on Synthetix must harmonize with the original price of the cryptocurrency on other platforms. The protocol also ensures that the spread between assets is minimal or even zero.
Like many other DeFi protocols, Synthetix was built on the Ethereum blockchain. The platform supports ERC-20 and ERC-721 token standards. However, the platform does not support BSC token standards or tokens from other chains.
Again, VertoChain's multi-chain compatibility makes it easy for crypto users to adopt. While Synthetix and VertoChain are different in terms of multi-chain compatibility, they also have similarities.
Both tokens have a governance system that gives token holders the right to vote for changes. The governance model takes into account the date of adoption and the amount of tokens members hold. Also, the model considers user activities. All these determine how much right a governing member has in proposing innovations.
Although the Polygon network has been integral in the DeFi ecosystem, its sole foundation has limited it. The protocol cannot be used to scale other blockchain networks. This though does not diminish the positive impact Polygon has had, namely; reducing transaction costs and increasing throughput.
Synthetix plays a different role from Polygon. However, the protocol is also limited in its token standards. Unlike Synthetix and polygon, VertoChain is a dynamic protocol. The protocol supports token standards of five different networks. Since more DeFi use cases will require multi-chain tokens and protocols, the VERT token may well be the next big thing!
