Solana, a smart contract platform that has recently been in the spotlight thanks to FTX serum, announced the upcoming release of what it says is a decentralized bridge to Ethereum ERC-20 tokens.
The bridge, called Wormhole, will allow users to transfer value between different blockchains and convert ERC-20 tokens to the corresponding Solana SPL standard.
The bridge is currently under the control of the large Swiss security company Kudelski. Solana chief Anatoly Yakovenko told Cointelegraph that his release is expected at the end of October. The beta version of the bridge will be available to developers on October 28, with the full version expected shortly thereafter.
Wormhole has a group of “trustees” selected from Solana’s current auditors on the Proof of Stake network. The company explained that Wormhole is a testament to authority that borrows trust and personality from the mainstream.
Parents are responsible for reading data from both the blockchain and verifying that the bridge is being used correctly. When two-thirds of the auditors sign a confirmation of the validity of a particular transaction, smart contracts on both sides issue a document and burn the corresponding token amounts to begin the conversion.
The system appears to work in the same way as the Federal Bridge shown in the sidechains of bitcoins like Liquid or RSK, although the managers do not appear to be the direct asset managers in the bridge.
A contract with a wormhole could define a new trust group that the company says was “created with an off-chain control system.”
“A wormhole is just one step,” added Yakovenko. The team is working on a parallel implementation that will allow lightweight clients to be placed on the chain, eliminating the need for all types of specific validators. “These different bridges have trade-offs between how quickly they are built, user speed, cost, and decentralization, but you can combine them to get the best of both worlds,” he explained.
Solana is currently home to Serum, an order-based decentralized exchange developed by FTX. So far, Ethereum liquidity can only reach Solana through the FTX encapsulation service. The wormhole will add another option for traders looking to use vaccines and other protocols.
Yakovenko also cited several other DeFi protocols currently being built on Solana, including Stardust, Terra, Ramp DeFi, Anchor, and REN.
Solana claims the transaction speed is over 50,000 transactions per second, which is achieved through a number of flawed algorithms like Blockchain like NEO. The basic idea behind the architecture is to have a network that is at least as fast as a node, which means eliminating bandwidth bottlenecks that often limit the scalability of other chains. This allows the blockchain node software to be strictly parallel, unlike many other chains that do not use the multi-threaded functionality of modern devices.