The blockchain industry has witnessed a major development as IoTeX’s community has voted in favor of Improvement Protocol 21 (IIP-21), a proposal to create a cross-chain bridge between IOTX, the native coin of the IoTeX network, and Ethereum.
The proposal received strong backing from the IoTeX community, with 306 million IOTX (73.77%) voting for the bridge and 109 million IOTX (26.23%) voting against it.
A total of 334 wallets took part in the vote, showing the community’s interest in expanding the utility and reach of IOTX through cross-chain interoperability.
This considerable potential for Ethereum and IoTeX Blockchain bridges has attracted growing interest as they offer various benefits to the blockchain ecosystem.
By facilitating tokens transfer between blockchains, bridging solves scalability issues, reduces network congestion, and improves user experiences.
“One of the main reasons behind IIP-21 is to leverage Ethereum’s strong DeFi ecosystem, increase IoTeX token liquidity within Ethereum, and build a lively developer and user community,”. “The proposed bridge between IoTeX and Ethereum has huge potential for both platforms and the wider blockchain community.”
IoTeX CEO and Co-Founder Raullen Chai.
Additionally, IOTX exists on the IoTeX network and is bridged to Binance Smart Chain and Polygon.
Solving limitations However, the legacy ERC-20 version of IOTX on Ethereum, known as IOTX-E, has limited supply and circulation, limiting its use in DeFi protocols and availability on major centralized exchanges.
The proposal aims to solve these limitations by introducing CIOTX (Cross Chain IOTX), a wrapped version of IOTX on the Ethereum blockchain.
CIOTX will be fully backed by the circulating IOTX on IoTeX, ensuring sufficient supply for use in any Ethereum-based DeFi application and circulation on centralized exchanges.
This strategic move, however, allows IoTeX to access the thriving DeFi ecosystem on Ethereum, including popular protocols like Uniswap, Curve, Aave, and Compound.
Trade IOTX tokens easily on decentralized exchanges
Introducing CIOTX on Ethereum will enable easy swapping of tokens between CIOTX and IOTX-E. By listing CIOTX and IOTX-E on decentralized exchanges like Uniswap and Curve at market prices based on demand.
This feature increases liquidity and gives users more flexibility in managing their IOTX assets. Moreover, the benefits of blockchain bridges go beyond IoTeX and Ethereum.
With the bridging of IOTX to Ethereum and the introduction of CIOTX, IoTeX aims to build a multi-blockchain ecosystem of IOTX-backed tokens.
A significant milestone for IoTeX and the blockchain community
This integration of IoTeX and Ethereum opens new opportunities for DeFi applications, increasing the utility and value of IOTX while promoting interoperability within the blockchain landscape.
As the blockchain industry continues to grow, bridges like the one proposed in IIP-21 play a vital role in unlocking the full potential of various blockchain platforms.
By enabling seamless token transfers, bridges increase scalability, lower congestion, and encourage collaboration between blockchain ecosystems, ultimately driving innovation and adoption in the decentralized finance space.
Using IoTeX’s speed and efficiency, businesses can now explore the possibility of enabling instant payments using IOTX or CIOTX tokens while benefiting from Ethereum’s large user base and DeFi infrastructure.
The successful implementation of IIP-21 and bridging IOTX to Ethereum represent a significant milestone for the blockchain industry, and we expect to see new use cases and innovative applications across various sectors, ultimately driving the adoption of blockchain technology and creating a more interconnected and efficient decentralized ecosystem.
