Allbridge, a multi-chain token bridge, has successfully partnered with Bitcoin software developer Daemon Technologies to create a Stack Bridge that will facilitate the transfer of stack tokens (STX) across different incorporated chains.
STX is described as the native token for the Stack layer-1 blockchain, which settles transactions on the Bitcoin (BTC) network. STX has a market cap of $1.8 billion, trading at $1.74 at the time of writing, according to CoinGecko.
In a February 9 announcement, Andriy Velykyv, Allbridge co-founder, confirmed a successful partnership with Deamon Technologies to establish a stack bridge. The new token bridge will allow transfers of Stacks tokens across all 12 blockchains hosted by Allbridge, including Ethereum (ETH), several Ethereum-compatible sidechains, Solana (SOL), Terra (LUNA), among others:
“Creating a bridge that allows for people to interact with Bitcoin-powered applications will help streamline processes that were previously only limited to a single chain and ecosystem.”
The highly anticipated Stacks Bridge will go live in Q2 2022. The new token bridge will initially facilitate the transfer of STX. Nevertheless, it planned to incorporate other Stack protocol SIPO10 tokens such as ALEX and USDA stablecoin in the future. Furthermore, there are plans to enable non-fungible tokens (NFT) transfers between the chains.
Key partner Daemon Technologies has provided a $140,000 grant to Allbridge to facilitate the growth of the token bridge. While commenting about the new integration to create Stacks Bridge, Daemon Technologies founder Xan Ditkoff said:
“The token bridge will allow users to come and use the assets within the network for whatever the use case is.”
Ditkoff further explained that he sees beneficial interplay between Stack’s utilization of the Bitcoin network to settle transactions compared to other blockchains, adding:
Buy Crypto Now“It’s good for people who want to transact on faster networks, then bring their assets onto Bitcoin for security.”
Allbridge Promises Secure Token Bridges
It is worth noting that the security of token bridges has been in the spotlight this month, following three hacks on token bridge smart contracts. Earlier this month, notorious hackers minted $321 million through an exploit in a bug on Wormhole’s smart contract on Solana.
Ditkoff brushed off concerns over security vulnerability related to the Allbridge token bridge, stating:
“We have a lot of confidence in the Allbridge team. It’s easy for people to forget that these bridges are so new. How long have people been coding with Solana’s VM? Everything is still at the bleeding edge.”
Earlier this year, in a Reddit post, Ethereum co-founder Vitalik Buterin warned the crypto community about the fundamental security vulnerability posed on token bridges. Ditkoff refuted Buterin’s remark, stating:
“I have a hard time seeing a future when bridges are not a huge part of the ecosystem,” and continued:
“The logic behind Vitalik’s words would be that everything settles on one chain that is optimized for the one thing that (Proof-of-Work) is made for: Byzantine fault tolerance. Bitcoin does that better than anything in human history will have an impact on whether one chain eventually dominates.”
