The ZetaChain Mainnet: A New Cross-Chain Experiment
The ZetaChain mainnet is set to launch soon, marking the start of a cross-chain experiment in the crypto world. ZetaChain aims to integrate with various blockchains, including Bitcoin, Ethereum, and chains in the Cosmos ecosystem. By doing so, it enables the development of applications that can use cryptocurrency from these different chains.
However, there are risks involved. A similar project called Thorchain faced multiple hacks in 2021, which raises concerns about the ambitious nature of this approach. Ankur Nandwani, a ZetaChain Core Contributor, acknowledges these concerns and emphasizes that the project plans to expand slowly. They will cap the value locked in their smart contracts and gradually increase it over time.
Growing ZetaChain Slowly
Nandwani explains that ZetaChain will carefully expand its operations to mitigate risks. As a former product manager at Coinbase and advisor to Brave, he has significant experience in the crypto industry. The project has been running a testnet for 18-20 months to prepare for the mainnet launch. One of the challenges they faced was dealing with chains that have different finality times.
To address this challenge, ZetaChain uses different confirmation times for deposits based on the blockchain’s requirements. For example, Ethereum would require more blocks to confirm a transaction compared to Bitcoin.
Bringing Bitcoin to Other Blockchains
ZetaChain’s validators will run light clients or full clients for supported blockchains to confirm transactions from all chains. This setup allows for interesting use cases like stablecoins backed by bitcoin. Nandwani believes success would involve expanding use cases for Bitcoin beyond just being a store of value.
The project envisions decentralized exchanges like GMX using bitcoin as collateral or platforms like Curve creating pools that combine bitcoin with other assets. ZetaChain has already announced plans to integrate with the OKX wallet and decentralized exchange Sushi to bring bitcoin into their ecosystems.
In August 2023, ZetaChain raised $27 million in a funding round from prominent investors including Blockchain.com, Human Capital, VY Capital, Sky9 Capital, and Jane Street Capital.
Hot Take: The Potential and Challenges of Cross-Chain Integration
The launch of the ZetaChain mainnet presents exciting opportunities for cross-chain integration in the crypto space. By connecting different blockchains, ZetaChain aims to enable developers to build applications on any chain while accessing other chains seamlessly. This opens doors for innovative use cases, such as stablecoins backed by bitcoin and decentralized exchanges utilizing bitcoin as collateral.
However, the ambitious nature of cross-chain projects like ZetaChain comes with risks. Previous incidents involving Thorchain highlight the complexity and security challenges associated with these endeavors. It will be crucial for ZetaChain to proceed cautiously, gradually increasing its operations while closely monitoring potential vulnerabilities. With careful execution and continuous improvement, ZetaChain has the potential to unlock new possibilities in the world of cross-chain interoperability.
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