Over the last posts, we’ve introduced the Solanax platform and our token, $SOLD, we’ve gone into detail on why we believe the Solana Ecosystem is the best possible environment to develop a platform such as ours and explored the concept of Automated Market Makers (AMMs) in a post meant to further develop our community’s understanding on how our platform works.
Today, in the same spirit of strengthening our users’ knowledge about our platform, whether they are more experienced or new to Decentralized Finance (DeFi), we will introduce one of our features: the ERC-20 SPL Wormhole Bridge.
What is the Wormhole bridge?
A Wormhole is a communication bridge that connects Solana to other DeFi networks. They allow the seamless movement of tokenized assets between blockchains, facilitating the exchange of information across otherwise disconnected Ecosystems.
In order to gain access to the full range of crypto assets available on the Ethereum network, Solanax will implement a Wormhole Bridge that, how the name clearly suggests, holds the purpose of connecting both Blockchains. A wormhole is not a blockchain network, nor does it need to be in any way. Alternatively, it can safely depend on consensus and finalization from both chains that it bridges.
The Wormhole is leaderless. This means that, upon recognizing on-chain events, all guardians perform equivalent computation and sign a “Validator Action Approval”. In this system, when two-thirds of all guardian nodes observe and sign an event using their individual keys, the wormhole contract automatically validates them on all chains and triggers the corresponding mint/burn.
Solanax is a Solana-based automated market maker (AMM) exchange providing lightning-fast trades, pooled liquidity, and other income-generating features. Solana was chosen as the underlying blockchain to facilitate low-cost, high-speed transactions. It is a permissionless, high-performance blockchain based on the Proof of History consensus (PoH).
Given the advantages that Solana offers when compared to other blockchain ecosystems, it is a popular solution among investors, users, and developers. Ethereum’s Proof of Work Consensus is slow, hard to scale, and comes with high gas fees which were exacerbated by its account-based system. Where Ethereum has failed to live up to the community expe, Solana quickly proves to be a viable alternative.
Solanax will utilize the cross-bridge Wormhole to connect to projects and digital assets existing on the Ethereum blockchain, facilitating adoption and allowing the crypto community to seamlessly move tokenized assets from one blockchain to another, improving interoperability and liquidity setup.
It is faster and cheaper; Solanax offers on-chain liquidity; traders will have more control over their trading activities; an integration of Wormhole for fusion with tokenized assets on the Ethereum blockchain, and much more.
For more details on the project at the forefront of the DeFi evolution, visit: