Yesterday, pNetwork announced the launch of its new cross-chain bridge that brings Bitcoin to Algorand as well..
Bitcoin can be used in Algorand thanks to pNetwork
pNetwork bridges allow the creation of tokens that can be traded alongside cryptocurrencies residing on other blockchains.
In this specific case, these are tokens created and hosted on the Algorand blockchainbut exchangeable 1:1 with native BTC on the Bitcoin blockchain.
The new token is called pBTC and is already present not only on Algorand but also on other blockchains, such as ethereum, polygonal, arbitration, BSC, eos, Telos Y XDAI.
For every pBTC token issued, there is one BTC locked in pNetwork reservesso at any time it is possible to return 1 pBTC and get 1 BTC in return.
In addition to pBTC, pNetwork has also created other cross-chain tokens, such as pETH, pUSDT, pUSDC, pLTC, pDOGE, etc.
In 2021, pNetwork and Algorand announced a partnership to bring cross-chain tokens to Algorandand yesterday the protocol was launched.
This protocol will allow users of Algorand use native tokens from Ethereum, Binance Smart Chain, Polygon and other blockchains in the future. For now, the only one really released is pBTC.
The alliance between pNetwork and Algorand announced in April is already beginning to bear fruit thanks to this new bridge
What is pNetwork?
pNetwork currently supports 15 different blockchainsincluding some layer 2-based ecosystems such as Polygon.
The pBTC bridge on Algorand is now live and provides a very simple interface to exchange BTC with pBTC and vice versa. Once pBTCs are received in Algorand, they can be use in all dApps based on this blockchain.
The launch of cross chain bridge between Algorand and Ethereum is also planned soon.
The goal of pNetwork is to connect all major crypto networks in this way, so that users can seamlessly transfer cash and assets between different crypto ecosystems.
The Algorand network in particular has been growing a lot recently in terms of development of new dApps and services.
However, in the field DeFi, for example, is still in its infancy, with a TVL of just $150 million, ranking it 30th among blockchains with DeFi protocols. It is possible that the use of pTokens will drive the expansion of the use of DeFi protocols in Algorand, as this allows the use of widely used cryptocurrencies such as BTC and ETH.
It is worth noting that the price of ALGO, Algorand’s native cryptocurrency, has been falling almost constantly since September of last year. Furthermore, to date lost 88% of its value since its peak in June 2019.
In particular, it has lost 32% in the last 30 days, despite some good news that could potentially have made it recover. However, the crypto market collapse concomitant with the terra implosion has interrupted this short-lived growth phase.