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Stablecoin DAI will become the bridge between the new and classic version of the Ethereum blockchain

Oct 29, 2020 | News
Stablecoin DAI will become the bridge between the new and classic version of the Ethereum blockchain

On October 28, developers from ChainSafe Systems and Ethereum Classic Labs announced a new collaboration that will create a new blockchain bridge between the classic version of Ethereum and Ethereum 2.0. And it will work with the use of the DAI stablecoin, already well known to the community.

What, in fact, is the point. New Ethereum is formed not by improving the old one, but as a new full-fledged network. Faster, more convenient, with different consensus mechanisms. But without any connected ecosystem. A huge block of projects has already been formed around the classic version, including those working with decentralized finance. Therefore, the developers came up with the idea - to create an opportunity for users of the new blockchain to use the infrastructure of its predecessor.

The bridge from ChainSafe Systems will operate according to the classical principle (similarly, for example, renBTC) - using smart contracts, a certain amount of ETH will be blocked and an equivalent amount in tokens will be issued. The launch of this project is scheduled for November 18th.

According to ETC Labs, "Launching a new bridge powered by DAI advances our core mission of creating a level playing field for financial instruments around the world."

This initiative has two objectives. On the one hand, there is closer interaction between MakerDAO and Ethereum, on the other hand, the formation of access for Ethereum 2.0 users to the huge ecosystem of decentralized finance. That means, all participants in the process receive benefits. Is it needed to clarify, that the world of cryptocurrencies will only benefit from this since such bridges allow you to get a single connected ecosystem, and not separate and independent chains?

Published on the EXBASE based on materials from forklog.com