This cross-chain DEX could make wrapped tokens a thing of the past


Encapsulated tokens have become increasingly popular as they allow traders and investors to use their crypto-assets on different blockchain networks. For example, Wrapped Bitcoin, which now accounts for around 1% of all Bitcoin in circulation, can be used on the Ethereum (ETH) blockchain to engage in various types of decentralized financial transactions (DeFi).

However, it may be possible to remove packaged tokens from virtual currency trading, which could significantly reduce the overall time and costs involved in executing digital asset transactions. By eliminating the requirement to wrap tokens, user experience (UX) can also be improved, as the process can still be too technical for many users, especially newcomers.

Trade native cryptoassets without encapsulating tokens

The portal’s cross-chain (decentralized or non-custodial) DEX with atomic exchanges was developed to make packaging tokens a thing of the past. Indeed, the digital currency of incompatible blockchains can be traded natively and without having to deal with a risky intermediary.

Portal is described as a self-hosted Layer 2 wallet and Bitcoin-based cross-chain DEX. It has been specially developed to enable atomic exchanges between Bitcoin (BTC) and other crypto assets in a fast, highly secure and private manner.

Last month, Portal announced that it had secured $ 8.5 million in capital through an investment round to create a self-sovereign, uncensored DeFi service on the Bitcoin network.

Portal’s funding cycle included contributions from several top investors such as Coinbase Ventures, ArringtonXRP Capital, OKEx, and

Michael Arrington, founder of ArringtonXRP, said decentralized cross-chain bridging is one of the most difficult tasks in the blockchain and cryptocurrency space, especially as several blockchains are starting to gain adoption and adoption. traction.

Arrington also said that Portal’s native Bitcoin approach to multi-chain transactions will provide an alternative transition mechanism for the growing number of on-chain traders and investors.

Brain Johnson of Republic Capital added that interoperability is a key requirement for the transition of blockchains to the broader financial sector. He explained that Republic Capital has invested in Portal because they approve of their approach to enable atomic trading. Using Bitcoin’s security as an anchor, the Republic Capital team believe Portal is in an ideal position to establish an effective set of bridges to DeFi.

Offer Bitcoin’s trust minimization guarantees

Portal aims to offer the appropriate speed and liquidity provided by centralized platforms while ensuring “Bitcoin’s trust minimization guarantees”.

From spot markets and options, to P2P lending and borrowing, all using on-chain, peer-to-peer contracts with no third party custody requirements, Portal aims to help users unlock the potential of Bitcoin. to really start decentralizing finance.

At the heart or center of Portal is its Layer-2 / Layer-3 technology, known as Fabric, which is described as an open source toolkit for launching censorship-resistant layers right above the web. Bitcoin base layer.

Fabric was designed to support fully private, off-chain execution of smart contracts for asset issuance, P2P swaps, staking, liquidity, derivatives, and various other use cases.

Eric Marindale, CEO of Portal, said that by bringing fast, P2P, Layer 2 exchange – with a speed comparable to centralized platforms but with increased privacy – Portal is able to truly deliver on the promise of “the self-sovereignty for all people. “

Eric also noted that most centralized trading platforms are actually not “decentralized” DEXs, as they claim. In fact, they are tokens wrapped in custody and censurable ecosystems that all “threaten Bitcoin’s promise of self-rule.” Fabric technology “enables Layer 3 privacy on cross-chain transactions and eliminates the need for centralized custodians,” Eric explained.

Using Bitcoin’s hash time-locked contracts to ensure users are in control of assets

Martindale said they believe Bitcoin provides the financial infrastructure on which the free, uncensored Internet of the future will be built, and although they start out with just a P2P exchange, their goal is to be “The Platform. form for decentralized human interactions on a peer-to-peer basis … be it communications, financial transactions or social media.

The platform uses Bitcoin’s “time-locked hash contracts” to ensure that users are able to maintain complete control over assets “offered in the trade, thereby avoiding counterparty risk and loss of funds.” .

It also intends to reward or induce anonymous third parties “interested” “in intermediary transactions between peers who do not trust each other while ensuring security”.

The platform has notably secured funding ahead of Portal’s planned public token sale, which will take place on this month.

As explained by its creators, Portal is a DeFi solution developed on Bitcoin. This makes DeFi “unstoppable with anonymous and unconscious exchanges via the first real cross-chain DEX that is truly trustless.”

It was created to “eliminate minting of wrapped coins (ie wBTC, wETH) or risky staking with middlemen”. With Portal, DeFi is transformed into a solution that “anyone can provide, maintaining anonymity in open and transparent markets with a security model as robust as Bitcoin mining.”

As its developers noted, the Fabric protocol is Portal’s Layer-2 / Layer-3 technology that “enables one-click censorship-resistant communications, media, and cross-channel exchanges, all on Bitcoin “.

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