Realization

Cross-chain bridges on EOSIO address the problem of asset exchange between users without the need for a third party (guarantor). In traditional cross-chain bridges, users wishing to exchange Asset A for Asset B must trust a third party to complete the exchange. However, on EOSIO, users can make transfers without relying on external platforms, thanks to the integration of a cross-chain bridge that simplifies the exchange process and ensures maximum security.

In traditional cross-chain bridges, centralized exchanges can act as guarantors, but in the context of decentralized solutions like EOSIO, the asset exchange process becomes more complex. EOSIO smart contracts can effectively lock funds from each user, and then unlock and transfer assets to each party. This makes the process more secure and transparent, eliminating the need for third-party platforms, but requires simultaneous availability of both parties for the transaction to be successfully completed.

On the EOSIO platform, liquidity pool mechanisms are similar to those of existing non-custodial exchanges. Liquidity providers lock their assets in pools, and users can exchange one asset for another without the need for a third-party guarantor. EOSIO smart contracts ensure the execution of all exchange operations, eliminating the need for centralized intermediaries while guaranteeing security and transparency.

Smart contracts on the EOSIO platform can effectively operate within a single blockchain, but to move assets between different ecosystems, special cross-chain algorithms are required. Unlike traditional smart contracts, EOSIO uses second-layer scaling solutions that allow assets to be securely and efficiently transferred between blockchains. These algorithms enable interaction between different ecosystems without the need for intermediaries, ensuring fast and secure transactions.

Second-layer smart contracts on EOSIO provide access to information from different ecosystems, including transaction details from networks like Bitcoin, Ethereum, Binance Smart Chain (BSC), and others. They can also interact with external data through oracles, expanding the possibilities for secure and efficient cross-chain transfers.

In EOSIO, cross-chain bridges can use specialized blockchains as intermediaries for asset transfers between different ecosystems. Similar mechanisms, like those in the BTS - SEI project, allow liquidity providers to contribute funds to a pool and earn income, ensuring liquidity and efficient asset transfers between blockchains.

In the EOSIO cross-chain bridges, the algorithm for asset exchange between different blockchains can occur through liquidity pools, like in the SEI project. The process happens in two stages: initially, the user exchanges an asset from the source blockchain for BTS using the first liquidity pool, and then, in the second stage, the assets are exchanged for another blockchain. This approach ensures efficient and secure asset transfers between different ecosystems.

In the second stage, the BTS token is exchanged for SEI on the destination blockchain, utilizing the second liquidity pool. This exchange, for example, from BTS to SEI, requires two liquidity providers. One provides USDT and BTS, while the other provides USDT and SEI. The operations are carried out through exchanges, and after the user submits a transfer request and specifies the SEI destination address, they need to transfer BTS to the exchange-provided address. This approach allows users to easily move assets between different blockchains while ensuring flexibility and security.

In EOSIO cross-chain bridges, asset exchange happens through two liquidity pools. When the user transfers BTS, the first liquidity provider converts the corresponding amount into SEI in the second pool, and the second liquidity provider then transfers the received SEI to the user's specified address on the SEI blockchain. These operations are automated, and the liquidity providers' collateral funds, exceeding the value of the funds used in exchange operations, serve as a guarantee of fairness. With two liquidity pools, assets can be exchanged in both directions, offering flexibility and convenience for users.

Cross-chain bridges on the EOSIO platform facilitate the transfer of stablecoins like USDT and USDC between various EVM-compatible blockchains, such as Ethereum, BSC, and Huobi ECO Chain (HECO). There are no restrictions on the types of assets or blockchains involved in the exchange, as long as corresponding liquidity pools are available, enabling users to freely move assets between different ecosystems.