Biconomy is planning to launch its native token, BICO, in the near future. The company also claimed that it will expand to support over 30 decentralized applications.
Multichain infrastructure network Biconomy has formally launched its Hyphen mainnet, setting the stage for instant, low-cost token transfers across blockchains like Ethereum (ETH) and Polygon.
With the launch of Hyphen, users can make near-instantaneous USDC transfers between Ethereum and Polygon rather than wait 30 minutes or hours, as is currently the case with transfers. Biconomy can facilitate speedy transfers by maintaining and rebalancing token liquidity on both sides of the chain, the company said Tuesday.
Sachin Tomar, Biconomy’s CTO, explained the existing challenges facing cross-chain transfers:
“On average, to transfer funds from Layer2 to Layer1 blockchains, it can take anywhere from 40-min to 7-days for users to receive their funds […] “More specifically, it currently takes around 40-50 min to get ERC20 tokens from the Polygon Network to Ethereum via their native bridge.”
In his view, these challenges lead to weakened network effects and result in a more difficult experience for the end-user. “Hyphen solves that problem,” he said, by enabling developers to offer value transfers between Ethereum Virtual Machine networks, various layer-two solutions and sidechains.
Future iterations of the Hyphen network will be completely decentralized, Biconomy said in a Twitter post.
As we build & improve Hyphen further, we are going to completely decentralize the infrastructure across all the supported networks.
Very soon, anyone would be able to provide liquidity, act as nodes, and contribute to the protocol!
Stay tuned for more info!
— Biconomy (@biconomy) August 10, 2021
Biconomy recently concluded a $9 million private funding round that was co-led by DACM and Mechanism Capital. To date, the company has raised $10.5 million from private investors and has processed over $570 million in transaction volume.
With the cryptocurrency market showing signs of life again, demand for cross-chain swaps is likely to rise, especially as DeFi, or decentralized finance, continues to grow in popularity. Platforms like Polkadot and Celer continue to place a great deal of emphasis on cross-chain integration and interoperability, with more developers coming on board to promote that vision.
Related: A multichain future will accelerate innovators and entrepreneurs