Safudex, Dutch software development studio with team-members in Singapore, the Netherlands, and Malaysia, announced the launch of the SmartBNB test-net, a cross-chain bridge between Neo and Binance Chain. For the first time, tokens can be transferred from Binance Chain to Neo and back in a trustless fashion using SmartBNB.
New concepts can now be realised using SmartBNB. Examples include the use of BNB and BEP-2 tokens to activate Neo smart contracts, the launch of projects based on both Binance Chain and Neo, thus benefiting from the Binance DEX trading features and Neo smart contracting features, and the introduction of DeFi applications for Binance Chain tokens.
Flora Sun, Director at Binance X, said:
“SmartBNB is a great step forward for blockchain interoperability, enabling token issuers and users to benefit both from the liquidity on Binance DEX and NEO’s smart contracting functionality. The bridge will unlock huge synergies between the two ecosystems.”
How SmartBNB Works
Tokens can be transferred from Binance Chain to Neo by locking them onto Binance Chain with custodians first. A proxy version of those tokens is created on Neo when the tokens are locked. Subsequently, those (proxy)tokens may be used on Neo network. The proxy-tokens on Neo are burned when the user wants to transfer tokens back to Binance Chain, which unlocks the original tokens.
By requiring custodians to deposit collateral on Neo, the system is made trustless. This collateral is distributed to all affected users in case the custodian misbehaves.
Custodians are paid out by users for their services within SmartBNB. A time-based fee applies to all tokens passed to Neo. Anybody can become a custodian by depositing collateral in Neo-based smart contracts in the form of GAS. Therefore SmartBNB marks the first time that existing Neo users can get a return on the Neo blockchain held GAS.
SmartBNB is now launching on test-net! Interested projects, potential custodians, and users can find out more about the project on the website of SmartBNB or on the Github page of the project, where the entire codebase is open source. A launch on main-net is not yet scheduled.