Interoperability is a significant driver for the growth of blockchain technology. The ability for standalone networks to communicate and share value with one another in a fast and secure manner creates an open and efficient ecosystem. Here at POA Network, we recognize this vast ambition to build interconnected networks and have previously created three other instances of our TokenBridge. Today, we are very proud to introduce the Ethereum Classic Bridge (ETC Bridge) and the wrapped Ethereum Classic token (WETC)!
The Ethereum Classic Bridge is a decentralized application that interfaces with both the Ethereum Classic (ETC) blockchain and the Ethereum mainnet. ETC coins can be transferred to the Ethereum mainnet via the ETC bridge. When this occurs, a specified amount of ETC is locked in a smart contract and a corresponding amount of WETC (an ERC20 compliant token) is minted on Ethereum. Users can also transfer their tokens from WETC back to ETC via the ETC bridge. When this transfer occurs, WETC tokens are burned and the equivalent amount of ETC is unlocked on the Ethereum Classic chain.
Wapped Ethereum Classic (WETC)
WETC tokens are Ethereum Classic compatible tokens on the Ethereum blockchain. They have the same characteristics as a standard ERC20 token and can be transferred or stored in any ERC20 compatible wallet or storage mechanism. When a new WETC token is issued (minted) the supply of ETC tokens does NOT increase; each WETC token represents a single ETC token on the Ethereum blockchain. WETC tokens can only be created via the ETC Bridge so it is not possible for the supply of WETC tokens to exceed the supply of ETC tokens. Similar to the issuance of POA20 from POA, the amount of circulating ETC tokens is equal across both networks (Ethereum Classic and Ethereum).
With the introduction of the ETC Bridge and WETC tokens, users now have access to a larger market and more liquidity! WETC token can be transferred and sold in decentralized exchanges, furthermore, users can leverage their WETC tokens on lending platforms where it is possible to borrow assets or create a loan using wETC as collateral.
With the ETC Bridge going live, it will mark the fourth in production bridge launched by POA Network. The previous bridges built by POA Network are the POA Bridge, the ERC20 to ERC20 TokenBridge, and the xDai Bridge.
We believe that the Ethereum Classic community will really benefit from the newest TokenBridge and open up the way for more interoperable avenues between the two networks By creating the ERC Bridge, we are allowing Ethereum Classic an access to bigger markets and more liquidity.
We’re also very excited to see what our developer community can do with this technology and are optimistic about the road ahead.
We have created the ETC Bridge forum for any queries or discussions by our users and we will be updating it gradually over the next two weeks. In the meantime, we have provided a small guide for new users on how to use the ETC Bridge and mint WETC tokens. We look forward to see what the future holds for the ETC Bridge and WETC!
For more information and guides check out the links below: