AllianceBridge Introduces Seamless and Fully Decentralized Interoperability Between Blockchains

AllianceBlock has successfully built out, tested, and audited its seamless and fully decentralized blockchain interoperability platform, AllianceBridge, which has now been launched on mainnet. You can use it here and view our tutorial here.

AllianceBridge is a fast, secure, decentralized, and open-source interoperability solution that helps DeFi overcome the limits of a fragmented blockchain space. It is completely chain-agnostic and is built for blockchain interoperability. It can be used natively on the target blockchains and can drive the mass adoption and seamless, inter-blockchain compatibility features that DeFi seeks but has so far been unable to achieve.

AllianceBridge enables applications built on different blockchains to communicate with and interact with each other, something which was never before possible and is a groundbreaking development for the blockchain space as a whole. On launch, Ethereum, BSC, Avalanche, and Polygon — four of the leading blockchains and protocols — will be supported, with capabilities to add new blockchains built-in to the AllianceBridge protocol.

Thanks to the development of a sophisticated SDK and integrations with Decentralized Exchanges (DEX), AllianceBridge provides fast, secure, and fully decentralized cross-chain swaps and access to a wide range of DeFi products and services starting with the leading blockchains and protocols mentioned above — all using the same, integrated suite of tools. These developments also add utility to the bridge’s native ALBT token. Furthermore, through a partnership with Hedera Hashgraph, AllianceBridge has been able to create a unique consensus mechanism that achieves consensus with significant performance and speed stability improvements that are unmatched, therefore setting a new industry standard. The project plans to have 11 validators by the end of the year by adding eight more validators on top of the already existing three, leading to even more decentralization and more transparent consensus.

With Multiple Blockchains in the Future, Interoperability Will Be Key

The future is moving toward one in which multiple chains coexist in a growing blockchain space. The issue becomes one of facilitating communication and interoperability between different chains that would otherwise be incompatible while retaining the unique benefits and advantages of different blockchains.

AllianceBridge is a key element in this mission. It can help bring about the seamless interoperability currently enjoyed by traditional finance without having to rebuild existing platforms, systems, and services from scratch. It currently helps connect between Ethereum, Binance Smart Chain (BSC), Avalanche, and Polygon — the leading blockchains and protocols of the DeFi space — and can be extended to other chains. In the past, applications built on these platforms worked on the base platform only. So, Ethereum-based apps worked on the Ethereum blockchain only, and BSC applications worked on the BSC only.

Now, all of the products, services, and potential opportunities built on these different platforms, such as cross-chain swaps, staking, yield aggregation, liquidity pooling, lending and investment protocols and more, can all communicate with each other and build on top of each other using AllianceBridge, which is something that was never possible before. The AllianceBridge can already support these top blockchain ecosystems:

• Ethereum has long enjoyed the first-mover advantage in the decentralized applications space and is the most widely used protocol in DeFi. Unfortunately, it often suffers from high transaction fees and congestion.
• BSC has seen a substantial rise in use, in part because of the shortcomings of the Ethereum blockchain, but security is often an issue in BSC-launched applications.
• Avalanche has a huge focus on DeFi and is collaborating with AllianceBlock to build a compliance layer and cross-border services to bring Avalanche to the institutional world.
• Polygon is also a rising DeFi blockchain player. In this space, adoption is key, so support for Polygon is a natural choice.

More Validators Means Better Decentralization and Transparency

By using Hedera Consensus Services (HSC), a trust layer that creates an immutable and verifiable log of messages, AllianceBridge achieves significant performance optimizations. These make the bridge faster, more decentralized, and more transparent than the industry standard.

Decentralization is also enhanced by adding more network validators. At present, the project has three validators:

• AllianceBlock, the primary development team behind AllianceBridge.
• Limechain, a blockchain consulting and advisory company that services blue-chip blockchain entities such as Polkadot and Hedera Hashgraph.
• Faculty Group, a collective of blockchain-native firms that provides a wide range of bespoke solutions to promising blockchain projects all over the world.

The more validators AllianceBridge can include, the more decentralized, high-performing and secure it can become. This is why two more validators are to be added over the coming months, and the project team aims to hit a total of 11 validators by the end of the year.

DEX Integrations Bring Cross-Chain Swaps and New Token Use Cases

Over time, AllianceBridge will support not only Ethereum Virtual Machines (EVMs) compatible blockchains, but will be the first bridge to support non-EVMs blockchains such as solana, casper labs, cardano, elrond and many more, a service not currently provided by decentralized bridge service applications anywhere in the world.

The project’s upcoming SDK also makes it not only extendable to decentralized exchanges (DEXs), but also allows DeFi projects to integrate AllianceBridge, and hence extends their offering to multiple chains to reach more users across different blockchains. DEX integration will also support fast, secure, and decentralized cross-chain swaps.

The bridge also adds a new utility to AllianceBlock’s native token, ALBT. All bridge transactions will incur fees of 1 ALBT, which is an inexpensive amount.

AllianceBridge Cleared a Comprehensive Audit and System Review

A full audit was completed by Omniscia, a blockchain security audit and development service provider founded by former auditors of the top-five blockchain security firms in the world. AllianceBridge’s code was reviewed by Nick Mudge, widely recognized as the father of the Diamond Standard, who affirmed that:

• The correct industry standards have been met.
• The codebase is clean and easy to pick up by new developers.
• The contracts are secure and will not lead to attacks or loss of funds.

AllianceBridge has also implemented the Diamond Standard, which ensures the following:

• That new functionalities can access and use storage variables even if the maximum size of a contract has been exceeded.
• That you can support large contracts and still enjoy modularity and upgradability because the Diamond architecture is compartmentalized with multiple facets.
• The handling of storage and functionality for multiple small contracts calling each other is simplified with a Diamond.
• You have control over when and what functions exist.
• You want your contracts to grow with your application using development that is incremental.

To recap the main developments and announcements outlined above:

• AllianceBridge supports blockchain-to-blockchain, protocol-to-protocol, and blockchain-to-protocol interconnection for different projects.
• The service supports EVM compatible blockchain and will extend to non-EVMs blockchains, a unique offering not presently offered anywhere by anyone.
• SDK integration with DEXs will help support fast, secure, and decentralized cross-chain swaps, thereby bringing a new level of interoperability to the DeFi space.
• SDK can be integrated by all DeFi projects, making them interoperable and accessible to more users.
• By using Hedera Consensus Services, AllianceBridge achieves consensus without having to maintain constant synchronization between bridge operators, leading to significant performance and speed improvements, setting a higher performance bar for the industry standard.
• While the blockchain space will not likely be a case of a one-chain-fits-all, AllianceBridge’s Chain-agnostic architecture means one-bridge-fits-all.
• Having more validators means more decentralization, along with transparent consensus.
• The ALBT token will be used to pay for platform operations
• SDK integration by other protocols and platforms will create additional demand for ALBT tokens.
• Built from scratch using the Diamond Standard.

Standardization Will Help To Build and Improve the DeFi Space and Bring DeFi and TradFi Closer

AllianceBridge will help bring the DeFi and TradFi spaces closer while also building on the key benefits of DeFi applications: speed, security, and transparency (and in the case of AllianceBridge, interoperability as well).

At present, many large financial institutions have attempted to enter the blockchain space and leverage the benefits of DeFi using, for example, Ethereum or Hyperledger, a consortium of over 250 blockchain companies. Each company enters the blockchain space in different ways and with different goals and wants to use different tools to enjoy different benefits.

This variation can cause problems further down the line. Consider the legacy systems at any such company. If those systems are made to be compatible with one chain or so, the company will be severely limited in the features, services, and benefits that it can provide its clients as the larger DeFi and blockchain systems grow and evolve. A universal, decentralized bridge that is easy to use, is easy to integrate with proper technical documentation, and provides the same benefits without restrictions or limitations solves these problems.

UI Updates and New Validators Will Improve Ease-of-Use and System Performance

The next design iteration of the AllianceBridge application will be updated to be more user-friendly, taking into account community feedback.

Two more validators will soon be added to the network, with a goal of 11 validators by the end of this year.

About AllianceBlock

AllianceBlock is building the first globally compliant decentralized capital market. The AllianceBlock Protocol is a decentralized, blockchain-agnostic layer 2 that automates the process of converting any digital or crypto asset into a bankable product.

Incubated by three of Europe’s most prestigious incubators: Station F, L39, and Kickstart Innovation in Zurich, and led by a heavily experienced team of ex-JP Morgan, Barclays, BNP Paribas, Goldman Sachs bankers, and quants, AllianceBlock is on the path to disrupt the traditional markets with its state-of-the-art and globally compliant decentralized capital market.

Website | Telegram | Discord | CoinGecko | White Paper | Green Paper | Token Economics Paper