Trinity Protocol Allows Cross Chain Conversion between NEP-5 and ERC-20 tokens

If you ask me, the best way increasing coin’s liquidity is to ensure that it is easily available and accessible to the masses. Token developers can do this by listing their coins in high volume exchanges as Binance or using token cross chain converters like what Trinity’s TNC tokens is currently doing.

Trinity’s liquidity improving announcement was made at Markgrafenstr, Berlin during the “How to Scale Blockchain” talk show arranged by Cryptotank. The event was graced by David Li of Trinity and Dr. Kumar of Ziliqa. Both speakers are integral to NEO and actively work on projects that plans to improve scaling-via Trinity and network throughput via Zilliqa.

Trinity’s Cross-Chain Converter

Simply put, TNC tokens will facilitate this cross-chain conversion between NEO’s NEP-5 and Ethereum’s ERC-20 tokens. Even though the service is still at infancy, it is the hope of the Trinity Protocol team that are currently testing the system that it will help pushTNC market influence in case the ERC-20/NEP-5 conversion demand increases.

At the moment, Trinity Foundation is the only validating node overseeing the conversion process but there will be more addition in the future.

If you are wondering, this is how NEP-5/ERC-20 token conversion takes place. It’s actually very simple, works both ways and there is no minting of new tokens in both blockchains:

  1. Attach the ETH recipient address and send NEP-5 TNC tokens to a conversion address on the NEO Main NET. The conversion address automatically freezes the NEP-5 tokens and unfreezes ERC-20 tokens.
  2. After an equal amount of ERC-20 TNC tokens are free, the Ethereum’s smart contract sends them to the recipient’s wallet.

How Trinity Solves NEO Network Scalability

Like Lightning Network is to Bitcoin, Trinity is to NEO. There are several high profile Bitcoin core developers working on the Lightning Network. On the other hand, Trinity is solely a NEO project. The main objective here is to solve network scalability and improve privacy. It’s ICO came to a close on January 14, 2018 raising $20M after selling 330M TNC tokens.

Interestingly, both protocols are desirous of increasing network efficiency and scalability. To actualize this, they introduce state channel and  off-chain concepts leveraging on blockchain’s inherent features.  Besides scalability, Trinity bids on increasing transaction settlement speed. This is possible because each channel can effectively settle multiple transactions before confirmation and re-route to the parent blockchain.

Trinity  plans to create one of a kind autonomous second layer solution on the NEO platform. To keep up with the decentralization theme common with blockchain technology, it shall incentivize users/nodes. The second version of its TestNet will be available by end of March 2018.

Leave a Reply