Adding the bridge would lead to the first appearance of a stablecoin on the Syscoin blockchain.
Binance cryptocurrency exchange is planning on how its stablecoin called Binance USD can be made available on the Syscoin blockchain and the Ethereum blockchain. For this, it has proffered the Syscoin-Ethereum bridge as a solution.
The bridge is from the stable of Blockchain Foundry. Blockchain Foundry is the firm that ensures the sustenance of the Syscoin blockchain. When it is introduced, people that have BUSD can easily transfer their funds from the Ethereum blockchain to Syscoin blockchain and vice versa. That means stablecoins will then be found on the Syscoin blockchain.
Binance commented on the development:
“Users can take advantage of Syscoin’s fast, scalable and low-cost transactions while also preserving the ability to leverage Ethereum’s smart contract functionality. Also help provide more use cases for BUSD holding users.”
A solution for Ethereum’s high fees
As a result of the increase in the use of DeFi services and stablecoins on the Ethereum blockchain, the blockchain has kept increasing its fees. The co-founder of Ethereum said the increase in fees wasn’t good because it could affect Ethereum’s security.
The co-founder and lead core developer of Syscoin, Jagdeep Sidhu thinks that with this development, stablecoins will be the solution for sending funds from one blockchain to another. It is quite fascinating that Buterin also envisaged this towards the end of May when he said:
“In the specific case of issuer-backed stablecoins there’s lots of things that could be done but aren’t, eg. every stablecoin could be an instant cross-chain bridge!”
Sidhu believes that Syscoin will also merge with other blockchains in the future. He said Syscoin has already started planning for it.
Speaking on why Ethereum blockchain was first considered, Sidhu said:
“Ethereum was an obvious first choice due to its nature as a proven smart contract platform and the pressing need for the benefits Syscoin can provide its network, including scalability. Future integrations will be carefully chosen according to the utility value they add to the ecosystem and how they can benefit adopters such as Binance.”