About 5 years ago, it was difficult to imagine that thousands of cryptocurrencies would be available in every corner of the world, and people would be embracing them with open arms. Cryptocurrencies are extremely easy to purchase, but due to their diverse nature, certain difficulties are bound to arise.
Currently, the state of cryptocurrency usage in the Blockchain industry may seem to be disintegrated and scattered. There are multiple networks, and each of them, like Ethereum, Harmony, and Solana, functions with different protocols, dApps, and qualities. Each of these Blockchain networks has its set of benefits, due to which users are always eager to try each of them.
This has led to a fast-emerging requirement in swapping tokens across multiple blockchains. To know how to swap coins and tokens across different blockchains, continue reading.
The easiest way to implement a token swap across blockchains that all users will have to deal with is through cross-chain bridges. This takes a significant amount of money and time, but it is worth it:
- First and foremost, the users need to identify the bridge they are willing to use between 2 or more networks and identify the digital coins that can be swapped on that multi-chain bridge.
- Next, the users need to choose a reliable DEX (Decentralized Exchange) on the blockchain network to transfer tokens to any of these restricted bridge tokens.
- The users need to then swap the tokens to one of the restricted bridge tokens accepted by the blockchain network bridge.
- The users accept the swap or transfer; make a payment for gas fees and DEX commissions in the native network of the token they are swapping.
- The users must complete the multichain swap of the restricted tokens via the bridge.
- The users accept the multichain transfer or swap and pay all the transfer gas fees and commissions in the native network of their tokens.
- They need to find and choose a DEX (Decentralised Exchange) that can transfer or swap the wrapped versions of the limited token to a new token on their target networks.
- Users need to swap the wrapped version of the target network of the restricted bridge token for the new token.
- Users accept the swap or transfer and pay the required gas fees and commissions in the new token’s native network.
- Users receive the new token.
Although this is one of the easiest methods that will come to the minds of most people, it takes a significant amount of time, money, and action. The users can lose their money on fees and commissions charged by the exchange. Many times, it may be hard to find the required coin pairs, especially for the new tokens. The users are required to perform a double conversion. In addition to that, most decentralized exchanges will require a mandatory KYC requirement.
Fortunately, some main projects are planning to work on easy and fast solutions, known as Multi-Chain Protocols. These protocols allow swaps or transfers of a huge quantity of tokens between multiple networks without several steps and KYC requirements.
Since the multi-chain protocol is becoming a trend in the crypto space, several projects have different opportunities to enhance their solutions and become the top ones in this multi-chain development.
One such excellent example of constant is the Rubic multi-chain protocol. This project is working on connecting newer blockchains more steadily and improving the quality and nature of the multi-chain feature.
Rubic has its connected blockchains, which means users can easily swap tokens between Ethereum, Polygon, BSC, Moonriver, Fantom, Solana, Harmony, and Avalanche in the simplest way on the Rubic platform in just one click.
Coming to constant enhancements, the Rubic development team has developed their Smart Routing feature. New integrated DEXs will allow the multi-chain Routing and give the best rates on coins that the users wish to buy. The future of Rubic includes a plan to add more DEX platforms and multi-chain protocols to their Routing system.