The rise and growing adoption of cryptocurrencies, including decentralized finance (DeFi) protocols in particular, has brought with it many new opportunities, but also a number of challenges that the world of crypto is facing right now.
The most important one of these is the basic fact that, while blockchain technology does enable unprecedented levels of security, speed, and scalability, every token is normally confined to a single blockchain.
Recently, several projects have started to address this issue, and NewsCrypto is joining in by making NWC a cross-chain token. So, what does this mean, how is it implemented and what will it bring for the future of NewsCrypto?
As a crypto project grows and gains ground with different use cases, it needs to become available on multiple blockchains in order to facilitate adoption, since different blockchains offer different capabilities. The NWC token started out on the Stellar blockchain due to its low fees and fast transactions, but as the development of a variety of protocols on other blockchains has become so rapid in the past year, NewsCrypto has implemented a cross-chain swap of their NWC token right on the project’s website.
Users are now able to swap between the Stellar, Ethereum, and Binance Smart Chain versions of NWC at a 1:1:1 ratio with a single click. Since the process is implemented via a smart contract, it is completely automatic and permissionless.
Given the number of innovative protocols on Ethereum and BSC, this will open the door to many new use cases for NWC. It will now be possible to use the NWC token in any Ethereum or BSC dApp and to list it on decentralized exchanges on these two blockchains. This will be a monumental breakthrough for NewsCrypto, as DEXes and other DeFi projects are on the forefront of innovation in the crypto space, taking the vision of decentralization further than ever before.
The most popular DEX on Ethereum is Uniswap and, with its daily trading volume hitting a high of $3.55B on January 4th, a listing on that exchange would bring in a huge number of traders that prefer decentralized exchanges over traditional centralized ones. Since Ethereum’s fees can be very high, however, Binance Smart Chain offers a number of its own DEXes with much lower transaction fees, including the Binance DEX.
Apart from exchanges, NewsCrypto’s cross-chain strategy will enable the token to be used as collateral in various DeFi protocols. The latter has grown exponentially over the past year, with the total value locked in DeFi currently over $18B. Implementing NWC in DeFi will enable token holders to lock it as collateral in order to take out loans, as well as to earn passive income by providing liquidity to NWC pools. This will result not only in wider adoption but also in less selling pressure, as users that need access to fiat funds will be able to take out loans on the basis of their NWC collateral instead of selling the token.
NWC/ETH is live on Uniswap
The Ethereum version of NWC can already be bought on Uniswap, and a cross-chain swap will soon be implemented right on the official website, so that you will be able to swap between the Stellar, Ethereum, and Binance Smart Chain versions of NWC with a single click. This is undoubtedly one of the biggest improvements in the short but thrilling history of NewsCrypto, as it opens the door to many new utilities for token holders.
Now you can store NWC in Ethereum wallets, and it will soon be possible to use the token in DeFi protocols as well. If you want to earn passive income on your ERC20 version of NWC, you can add liquidity to the NWC/ETH trading pair to earn a share of the trading fees.
NewsCrypto has already been leading the way when it comes to crypto education, and now it will join the ranks of innovative cross-chain projects, bringing the utility of their token to countless new users. Since 2021 has already been touted as the year of cross-chain projects and blockchain interoperability, there is no doubt as to the effect that this will have on NWC.