Native Coins and Their Use in Cross-chain Swaps
Dubai, UAE, 27th January 2024, Cross-chain swaps enable the transfer of digital assets between blockchain networks, promoting interoperability and unlocking new possibilities for users. Native coins, unique to each chain, are at the core of cross-chain transactions, facilitating seamless crypto asset transfers. Let’s explore their role in more detail.
Existing Mechanisms
There are various methods to conduct cross-chain swaps, but currently, most of them rely on bridges. These bridges work by creating a wrapped version of a token that originated on one blockchain to exist on another, following the second chain’s rules. Once a user receives the wrapped token, they can exchange it for the asset they initially wanted on any DEX. Many cross-chain protocols automate the second part of the pr...