decentralization

How to Swap Decentralized Liquidity Across Multiple Chains in 2022

By matrixmike | matrix-mike | 15 Mar 2022


The past couple of years has been full of technological advancements in new and old decentralized blockchains. There have been major increases in transactions per second (TPS) among level one solutions like Solana (SOL), Avalanche (AVAX), Fantom (FTM), Luna (USDT), and others. In fact, crypto coin nerds around the globe are waiting for the release of Ethereum 2, which is supposed to address its low TPS, and high gas fees, because of the growing traffic and congestion. 

 

What is Decentralized Liquidity?

Of course, it all started with Bitcoin (BTC) in 2009 when that famous white paper was filed online by Satoshi Nakamoto, its elusive creator. But Bitcoin is seen more like a store of value, even a hedge against inflation in certain circles. Bitcoin doesn't really host many DAPPS or services, other than being the greatest peer-to-peer payment system ever created. Bitcoin, like other crypto coins and blockchains, are decentralized, meaning they aren't controlled by any centralized authority or owner. On the contrary, cryptocurrencies are autonomous computer codes, capable of evolving with market conditions and trends. The value, or liquidity of each coin, respectively, is decentralized as well. 

 

Where is All of The Liquidity Now & How do You Access it?

These days you need to have multiple wallets, that work with different decentralized blockchains, respectively, in order to move liquidity between them. Let's say you would like to participate in an upcoming NFT project that is based on the Solana blockchain, but you don't own any SOL coins at the moment. You have a Metamask Wallet, set up with enough ETH in it, to pay for the mint, so you would have to transfer around to the centralized or decentralized exchange of choice, to do the swap, etc...

There is more work involved than anyone prefers, but until now, moving & swapping crypto, on decentralized exchanges, can be a pain people tend to avoid.

But that is all changing now...

 

Who is Symbiosis?

Finally, Symbiosis aggregates decentralized liquidity pools across exchanges, which makes swapping value between ANY crypto blockchains, simple as one mouse click! This advancement will most likely lower the barrier for entry into crypto, for older folks, and those without tech-savviness. Symbiosis supports cross-chain swaps quickly, and for any of the major coins traded these days. Although, according to their official website, Symbiosis works simultaneously, via EVM compatible and Non-EVM compatible chains, a true breakthrough for the crypto space overall.

 

What Are The Benefits of Decentralized vs Centralized Exchanges?

Anyone who gets involved with trading and investing in crypto coins knows that decentralization is the heart of why cryptocurrencies are becoming so popular. When there is no central authority that governs the blockchains, manipulations, and corruption are almost eliminated. Not to mention that your transactions are more private, and not exposed to the same scrutiny that centralized exchanges have on their users. 

Within the world of cryptocurrency, the more experienced folks almost always prefer decentralized exchanges, over centralized ones. On the contrary, less experienced people prefer centralized exchanges, due to their ease of use, and well-interfaced technologies, which produce a smoother user experience overall. In the long run, trading crypto on centralized exchanges will cost you more money in fees, and gas slippage.

 

Wrapping it All up Thoughtfully

In 2022, the crypto landscape is poised to change drastically, with companies like Symbiosis, and others, who are making access to all crypto coins much easier for decentralized enthusiasts. More people than ever before in history are holding crypto and have access to the newest advancements in blockchain tech to date. Even with all of these seemingly accelerated positive movements, crypto overall is still in its infancy, compared with other assets like gold, silver, stocks, and bonds too.

Just remember that no matter what type of crypto you are interested in buying, you should do your own research (DYOR) prior to simply buying certain coins based on the hype. There are wonderful blockchains available today, which provide real-world value for users, and investors alike.

How do you rate this article?


45

0

matrixmike
matrixmike

I'm an inspired crypto enthusiast who studies the market trends and results to determine the course of the future of cryptocurrencies around the world.


matrix-mike
matrix-mike

Welcome to The Matrix Mike blog, where we investigate everything crypto-related. My content is written by me, for everyone to enjoy, and hopefully add value to your understanding of cryptocurrency. Learn more about popular crypto coins, new blockchain projects, and a deep dive into the Metaverse, and the exciting world of NFTs.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.