Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more.

Start Earning Interest
Ad: Bybit - Make your first deposit and earn bonuses of up to $3,000, and more! Earn now!

Billions of dollars in Cosmos (ATOM) are set for new Ethereum bridge

A new proposal has been announced for a cross-chain development on Cosmos, a high-speed, interoperable blockchain.ย  Connecting Cosmos and Ethereum Althea Network, a decentralized mesh Internet network for rural communities, announced its โ€œGravity Bridgeโ€ product in a blog post this week.

Billions of dollars in Cosmos (ATOM) are set for new Ethereum bridge
Deposit and Earn Up to $3000 Bonus

A new proposal has been announced for a cross-chain development on Cosmos, a high-speed, interoperable blockchain.ย 

Connecting Cosmos and Ethereum

Althea Network, a decentralized mesh Internet network for rural communities, announced its โ€œGravity Bridgeโ€ product in a blog post this week. The product aims to connect the Ethereum and Cosmos blockchains to each other (technically called a โ€œbridgeโ€) for the Cosmos Hub.

โ€œBacked by billions of dollars of Atoms staked, the Gravity Bridge is the most secure, efficient, and decentralized cross-chain bridge to ETH,โ€ the firm said.

Cross-chain bridges are an integral part of the broader crypto and blockchain ecosystem. These are a step ahead of the one-size-fits-all narrative of earlier blockchains, which brought about problems of scalability, speed, and muted growth.

In simple terms, cross-chain products allow blockchains to โ€œspeakโ€ and transfer value to each other and swap assets to each other. Cosmos has been built with these limitations and benefits in mind: It is a decentralized network of independent parallel blockchains, each powered by BFT consensus algorithms like Tendermint consensus.

And the Gravity Bridge helps port it to Ethereum. As per the official announcement, it is an evolution of the Peggy bridge, which itself has been developed in collaboration with the Interchain Foundation.

Benefits of Gravity

As Gravity is installed on the Cosmos Hub, the latterโ€™s validators will directly participate in the operation of the Gravity bridge. That itself is backed by billions of dollars of staked ATOM, making Gravity the most secure bridge to Ethereum in production (after launch).

Gravity is also engineered to be very efficient. The Ethereum contract is highly optimized to use as little gas as possible, and transactions are batched. This allows for cheap and frictionless transactions from Ethereum to Cosmos.

Interoperability is the next feature. โ€œGravity will be able to bring ERC20 assets from Ethereum into Cosmos, but it will also be able to bring Cosmos assets to Ethereum,โ€ said the blog, adding:

โ€œ$ATOM and every other asset in the Cosmos ecosystem will trade on Uniswap and other Ethereum AMMs, bringing a huge amount of liquidity and value to these assets.โ€

Meanwhile, Althea said it had already tested Gravity on two testnets, and that it would host an incentivized testnet in late Q1 2021. โ€œThere will be prizes available for validators, relayers, and hackers,โ€ it said.

Wonder whoโ€™s taking that offer up.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis
Price snapshots
More context
Join now for $19/month Explore all benefits
Deposit and Earn Up to $3000 Bonus

Like what you see? Subscribe for updates.