In 2021, Biconomy launched its native BICO coin with an aim to address the key issues surrounding blockchain transactions. These are high gas fee, slow processing speed and poor user interface.
These issues have become a headache for the users as well as for the network. If this wasn’t enough, users have to deal with the cumbersome process of multi-chain token transfer. To address these issues, Biconomy introduced an instant cross-chain protocol named Hyphen.
Hyphen is heaven for users looking for solutions to speed up cross-chain transactions at the lowest fee possible. In my previous post, I have covered Biconomy (BICO Coin), just for a quick reminder, let me put some light on it before I talk about Hyphen.
What is Biconomy?
Biconomy is a blockchain project that aims to simplify network transactions. It has its own SDK/API that can be deployed on multi blockchains like Ethereum, Avalanche Crypto etc. From facilitating multi-chain transactions, it also facilitates faster transactions between layer 2 and layer 1 of the blockchain network i.e between Polygon (MATIC) and Ethereum.
The project has successfully introduced products addressing issues surrounding blockchain transactions and Hyphen is its most popular offering.
Biconomy BICO coin has a record listings on the exchange, hitting over $20 per token in the first week
What is Hyphen by Biconomy?
Hyphen is an instant cross-chain protocol by Biconomy. It provides APIs that facilitates transactions between EVM chains, various L2s and allows faster interaction between L1 and L2 layers. It has the following features –
- Flexible Mode of Payment
- Faster Transactions
- Gas Efficient
Flexible Mode of Payment:
Hyphen users can pay for the cross-chain gas fee in the token they wish to transact with. For example, if I am transferring USDC from Avalanche to Ethereum blockchain, I can pay for the gas fee in USDC stablecoin than paying it in either ETH or AVAX separately.
Hyphen guarantees faster cross-chain payment transfer that completes within 5 minutes than waiting for hours or in some cases days.
The architecture is developed in a way that the user will pay the lowest gas fee when compared to traditional bridges like Polygon bridge where the gas fee is on a higher side.
The Hyphen mainnet went live in August 2021
How does Hyphen Work?
Biconomy has LiquidityPoolManager contracts for every supporting chain where liquidity is stored. It also has Executor nodes (off-chain servers) that monitor these contracts for any incoming deposit transactions.
The Executor nodes have two components-
- Watch Tower
Watch Tower monitor LiquidityPoolManager (LPM) smart contract for any incoming deposit transaction on any of the supporting chains. Once the transaction is identified, it signals to the Executor.
The Executor verifies the incoming deposit and initiates a transfer transaction on the other chain.
The LiquidityProvider fee and transaction fee are deducted on-chain on the smart contract. It is important to note that only the Executor has the right to transfer funds from the LPM smart contract.
Hyphen also uses the re-balancing scripts to identify low liquidity on supporting chains and triggers the re-balancing operation. Funds are then transferred from other chains to the particular chain in order to balance the liquidity.
Hyphen supports multiple currencies like BICO coin, ETH, USDT and USDC. It will support more currencies once the project expands.
Hyphen supports popular blockchains i.e Ethereum, Polygon (L2) and Avalanche. Hyphen primarily serves the Ethereum blockchain.
Hyphen Upcoming Addons:
Hyphen is all set to integrate itself with the DAPPS. It means moving your funds from Ethereum to DAPP and back in a seamless manner that is both faster and cost-effective.
The core of any blockchain based project is decentralization. Biconomy will decentralise Hyphen in the next version. In V2, anyone can provide liquidity, act as nodes and contribute to the protocol.
In return, the contributors (liquidity providers, node operators & remaining stakeholders) will be rewarded with a percentage of network revenue (likely to be paid in BICO).
Biconomy BICO Coin Price:
Please check the latest BICO coin price, shared below –
Hyphen is the missing link that connects cross-chains and allows smoother transfer to funds. It’s a product that facilitates faster transactions with multi-currency support. A user can use stablecoins (USDT and USDC) to play around the network at the lowest possible gas fee.
Hyphen is a blessing for the Layer 2 scaling solution built on Ethereum. The project is in its nascent stage but has a lot of potential once it integrates with popular dapps and turns decentralized.
This completes my review on Hyphen – A product by Biconomy (BICO Coin). Feel free to checkout ICP Coin Roadmap and other cryptocurrencies articles live on the website. If you’re a fan of blockchain technology then please do share this post on your social handles and educate everyone around you. Do remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.