Blockchain News

DEXs on ICP Unlock BTC/ETH Cross-Chain Swaps

ETH/BTC is a leading non-stablecoin trading combination, with daily volumes exceeding $105 million. The exchange of Bitcoin for Ether provides access to a multitude of possibilities. It enables the utilization of Bitcoin’s territory and community in the DeFi domain, leading to increased innovation. By converting ETH to BTC, users are able to capitalize on the robustness of Bitcoin.

By utilizing centralized exchanges (CEXs), it is possible to exchange assets between two leading blockchains. These exchanges serve as custodians for digital assets that users exchange.

CEXs are managed by a single entity and handle funds and sensitive information. These exchanges carry their own set of concerns, such as being exposed to hackers and scammers. According to previous records, significant financial damage has occurred.

DEXs offer consumers a non-custodial alternative to CEXs for exchanging BTC for ETH and vice versa. Due to the fact that the assets are transferred via multiple channels governed by its consensus protocol, they are not transacted conventionally.

In order to address this issue, DEXs employ blockchain intermediaries to facilitate the transfer of assets between chains. Despite this, cross-chain bridges remain vulnerable to hacking and fraud. DEXs are accompanied by increased transaction fees due to overloaded networks.

ICPs, on the other hand, are utilized to establish a multi-chain environment in which smart contracts can communicate effortlessly across multiple chains. Its trustless multi-chain innovation is generated by a number of functions, including its bridgeless architecture and non-custodial cross-chain exchanges. Establishing a foundation with chain-key technology and introducing interoperability to exchanges via the ICP follow suit.

The process of converting traditional tokens to CK tokens is an open-source procedure, and the majority of ICL wallets provide a user interface for the conversion, such as NNS and ICP, which utilize on-chain technology to initiate the changes.

Decentralized marketplaces that facilitate asset swapping include ICPSwap, Sonic, and Helix markets. These are the fundamental elements that enable an unpredictable multi-chain scenario. The gas fees are particularly advantageous for users conducting cross-chain transfers on decentralized exchanges utilizing ICP, which operate according to a reverse gas model. The developers bear gas fees in this case. A user-friendly interface and non-custodial decentralized exchanges complement this. Users of ICPSwap and Sonic are granted the opportunity to establish connections with various DeFi activities by utilizing their ck tokens.

Erica Lee

Erica is a finance professional who has over a decade of experience in the finance sector as a management consultant. After years of reporting on forex, stock markets, and finance, she now contributes her strong financial skills with the CoinNewsSpan team. Since 2014, she has been deeply involved in the blockchain and cryptocurrency space. She believes that blockchain technology has tremendous potential to make our lives better.

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