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How Syscoin and Thorchain Are Racing to Bridge Bitcoin to Ethereum

Syscoin and Thorchain Learn
  • Syscoin and Thorchain are two key platforms revolutionizing ETH, BTC.
  • The Syscoin team is focusing hard on rolling out its new smart contract.
  • The goal of THORChain is to facilitate cross-chain liquidity.

While the crypto hype from 2017 has long since passed, we are now witnessing blockchain going mainstream. Big brands like Taco Bell, Coca-Cola, and McDonald’s are getting their own non-fungible tokens (NFTs), and even VISA is settling transactions using Ethereum.

Despite this progress, the lack of cross-chain capabilities is still a huge roadblock when it comes to reaping the full benefits of blockchain technology.

We will explore two of the key platforms that are currently competing to revolutionize value transfer and bridge the two most important networks: Ethereum and Bitcoin

What is Syscoin and how does it work?

Syscoin takes the best parts of both Ethereum and Bitcoin and consolidates them into one single platform. Essentially, Syscoin is an alternative to Ethereum. It has two chains – its merge-mined Bitcoin-based chain, and Syscoin’s Network Enhanced Virtual Machine (NEVM). Anything that can be done with Ethereum can also be done with NEVM.

Right now, the Syscoin team is focusing hard on rolling out its new smart contract and NEVM capabilities. One of the key features of Syscoin that makes it particularly unique is its opt-in features that provide projects with regulatory compliance at scale for their assets’ transactions – without involving custodians. This enables securities to participate in emerging fintech trends, such as DeFi, in a safe and compliant way.

Early next year, the company will deploy rapid speed via ZK-rollups (this is a construction scalability method that places layer 2 blocks on top of the Ethereum blockchain in the form of a side chain). Syscoin’s NEVM is currently undergoing a full audit by a third party, and by the end of next year, the company will fulfill the technical vision for NEVM. This has been outlined by the lead developer of Syscoin, Jag Sidhu, in his peer-reviewed paper: A Design For An Efficient Coordinated Financial Computing Platform.

What is THORChain and how does it work?

THORChain is a decentralized liquidity protocol. It is used for swapping native assets such as Bitcoin between different blockchains – without wrapping them as tokens on other chains. Its documents describe it as “ensuring every stage of the process is byzantine-fault-tolerant”. Ultimately, the goal of THORChain is to facilitate cross-chain liquidity while remaining resistant to centralization and capture.

There are four key roles in the THORChain system: liquidity providers who provide assets to the THORChain liquidity pools in exchange for yield, swappers who swap their digital assets for other digital assets, traders who find assets that are mispriced between markets and buy them low and sell them high for a profit, and node operators who are paid to secure the system.

Previously, THORChain has been used by other chains, such as ShapeShift, in a bid to become fully decentralized.

The key differences between Syscoin and THORChain

One of the obvious key competitive advantages of Syscoin is that it retains the inherent security of Bitcoin’s security model and miners. This gives it a significant edge over THORChain, which was recently hacked multiple times due to central points of failure.

In July 2021, THORChain – which takes care of approximately $100 million in funds – was hacked for a total of around $13 million. Soon after the exploit, DeFi figurehead Andre Cronje tweeted:

Innovation leads to exploitation. Its why hardened protocols often stop innovating, very little upside to increase risk by innovating. Its why we also see more exploits in new developing sectors.

However, the asset that powers the THORChain ecosystem and provides the economic incentives that secure the network, known as RUNE, has yet to recover in value after plummeting significantly following the breach.

So which one comes out on top?

Despite the benefits and innovation brought to market by both of these platforms, it seems obvious that the one thing that clinches it is Syscoin’s enhanced security. Given that the July 2021 hacks were only a few months ago, it’s understandable that many users are still wary of investing in the platform.

The fact that Syscoin is also fully compatible with Ethereum and that any Ethereum smart contract can be deployed on NEVM is another huge bonus, given that Ethereum is the most popular blockchain for running smart contracts. To follow along with Syscoins’ latest developments, you can join almost 5,000 members in its Telegram community or follow along on Twitter.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

Lisa is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.