NeoLogin, a non-custodial wallet for Neo-based decentralized applications, has announced the testnet launch of a cross-chain bridge between Neo and Binance Chain named SmartBNB. The protocol allows on Binance Chain to use Neo smart contracts through the use of a cross-chain bridge.
NeoLogin made announcement in a blog post published Friday, April 4. According to the announcement, SmartBNB is developed by Safudex, a Dutch software development company who also built NeoLogin wallet.
Safudex rolled out SmartBNB in the last month of March and now NeoLogin has launched this protocol in testnet. A main-net launch is not scheduled yet.
According to NeoLogin, through SmartBNB, BNB and BEP-2 token can be used to activate smart contracts on Neo blockchain. The protocol aims to leverage cross-chain interoperability to increase addressable markets for applications and tokens on both blockchain networks by benefitting from the trading functionalities of Binance DEX and the smart contracting functionalities on Neo.
The SmartBNB act as a cross-chain bridge in which token on Binance chain can be transferred to Neo by locking them with custodians on Binance Chain. The blog post, about working of the protocol, reads:
“Upon locking tokens, a proxy version of those tokens is created on Neo. Those (proxy)tokens can subsequently be used on the Neo network. When the user wants to transfer tokens back to Binance Chain, the proxy-tokens on Neo are burned, which unlocks the original tokens.”
Anyone can become a custodian just by depositing GAS token as collateral. Once the collateral is pegged on the Neo blockchain, users on Binance Chain can send their token to the custodian. The custodian mints the token on NEO and sends them to Binance Chain token holders.
When a user wants to redeem their BNB token, tokens minted on Neo are brunt. This protocol becomes trust less as the custodian might not return the tokens to Binance Users. In that case, the collateral pegged by the custodian on the Neo blockchain is distributed to all users.
Neo is purportedly the first public blockchain platform integrated with Binance Chain to offer cross-chain smart contracts. Flora Sun, director at Binance X, commented:
“SmartBNB is a great step forward for blockchain interoperability, enabling token issuers and users to benefit both from the liquidity on Binance DEX and NEO’s smart contracting functionality. The bridge will unlock huge synergies between the two ecosystems.”
If you found this article interesting, here you can find more Blockchain and cryptocurrency news
