As more and more blockchains are created and rise to prominence, we are faced with a dilemma. There is no ‘one blockchain to rule them all’ in any sense, so there has always been a need to swap between them to access the different chains as needed. Interoperability between blockchains would bring great value to the whole crypto market, and so many people are looking to find a solution.
Swingby saw an opportunity to build a protocol that greatly reduces the burden of inter-blockchain token swapping, using decentralized, trustless bridges. With numerous applications, especially in DeFi, there is a great need for services such as these, which makes Swingby an interesting case study.
What is Swingby?
Swingby is a decentralized token swap protocol, launching in Singapore in 2018. It allows users to move between different blockchains, such as Bitcoin, Ethereum, Binance Chain and more, without a central custodian.
Skybridge is Swingby’s bridge protocol which builds these bridges that are secured by a network of nodes. These nodes execute fast token swaps using layer 2 ‘multi-party computing’ technology. Ultimately, it enables users to swap their coins across chains using self-custody wallets. The Skybridge testnet bridge has already transacted over $14 Billion in testnet BTC capital between the Bitcoin and Binance Chain blockchains, showing that it is able to maintain a high quality service at scale.
On December 28th, the Swingby team launched their first "Chaos-MainNet" bridge, which allows Bitcoin to be moved to Ethereum via WBTC. Since the initial launch, over $4.5M worth of BTC/WBTC have crossed the bridge and over $35M worth of Swingby has been bonded to the Metanode network. Following the success of the first launch, the team have announced that their second Skybridge will be a Bitcoin to Binance Smart Chain bridge and will launch at the end of March 2021.
How Does Swingby Work?
The leading product of Swingby is the Skybridge, which allows cross-chain movement of assets. This is possible thanks to Skybridge’s staking-powered decentralized bridging protocol, making the process of moving assets between blockchains and other distributed ledgers fast and trustless.
Swingby's Skybridge works by utilizing the latest in threshold signature cryptography ("TSS") and multi-party computing ("MPC") research, allowing for efficient, dealer-less key generation, and distributed computation of ECDSA and EdDSA digital signatures. It is through these technologies, combined with a proof-of-stake consensus system and peer-to-peer network, that it is possible to deliver the layer-2 cross-chain bridging protocol to users.
Who Created Swingby?
Swingby was created with a single vision: developing tools to connect Bitcoin with other blockchains.
Yusaku Senga is the founder and director of Swingby Protocol. He has worked as a blockchain software architect and in R&D in the industry. He also founded Decentralizedtech Research Institute (DRI), where he currently stands as the president. DRI has helped pioneer the RICO, the Responsible Initial Coin Offering Framework, which solves the problems faced by conventional ICOs.
What is the SWINGBY Token?
The Swingby Token (SWINGBY) is used in the Skybridge. It has numerous utilities for the protocol, including to prove eligibility to participate in a TSS group, a core element of Swingby’s Skybridge that enables the protocol to be trustless. Token distribution is as follows:
- Foundation: 33.6%
- Staking Reserve: 30%
- Team: 17%
- Advisors: 8.5%
- Private Sale: 5.9%
- Seed Sale: 4%
- Public Sale: 1%
What is SWINGBY Used For?
Swingby’s Skybridge is fueled by SWINGBY. It’s primary use case is to prove eligibility to participate in a TSS group, as it shows a financial commitment. This ensures that network validators behave appropriately.
Next, the token is used to foster growth of Swingby. This was achieved through the pre-staking program where users were able to earn up to 1% interest each week. Other than these uses, more are planned going forward.
Governance and fee reduction are currently being tested as a way to improve the value of the token, while providing essential services to the project like helping decide the future of the Skybridge.
Interoperability between blockchains, DeFi, DApps and more - these areas of the blockchain development and cryptocurrency markets are just a selection of examples of what will benefit from Swingby and the Skybridge product. Millions of tokens have already been swapped, thanks in no small part to the decentralized, trustless and UX-focused Skybridge.
As more blockchains grow in popularity and see wider usage, there will be a greater need to swap between them. Swingby is set to be a central player in this growing market, and so will only continue to benefit as it continues to expand.
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