Within the Cryptocurrency environment, we have seen many different types of tokens and coins. Each new project has the option of creating their own blockchain, or going for the already validated consisting Blockchains and build on top of theirs.
The most familiar one is the ERC-20 token, issued when building on top of the Ethereum blockchain. This means that your token is dependent on the Ethereum network, but will also benefit from the thousands of miners that are already actively contributing to the network. There are NEP-5 tokens, which are those for projects build on top of the NEO Blockchain.
We also have WAVES tokens, running on the WAVES blockchain, there are NXT-2.0 tokens, running on the NXT blockchain. This list goes on and on and with each project migrating to their mainnet, there are more cases like theses being added to this list.
The moment a project creates their own blockchain, depending on the mechanism behind it, but new validators have to arise and dedicate themselves to this project.
As of lately, more and more projects are dedicating themselves to creating their own blockchain and thereby issuing their own tokens, leaving behind the ERC-20 tokens on the Ethereum Blockchain. As lots of projects have done so, it doesn’t necessarily mean that it’s a wise decision, but on the other hand, it can truly cause a shift in the entire industry.
One of the best examples for this is Binance creating their own mainnet and issuing a dedicated type of token for their Binance Coin (BNB). Their mainnet went live and what first was an ERC-20 token, is now a fully dedicated BEP-2 token on top of the Binance Blockchain. After this point, Binance started releasing their Decentralized exchange and expanding the use cases for their token and ecosystem.
In order to be listed on the Decentralized Exchange, tokens have to be BEP-2, on top of the Binance Blockchain. What that meant for a lot of projects is that they would need to transfer their tokens from their own Blockchain, or from the Ethereum blockchain to the Binance Blockchain. That’s where swapping comes in.
What is a token swap?
It’s actually quite an easy thing to explain, you literally swap your tokens. Behind the scenes, all kind of difficult mechanisms are in place to facilitate this process, but what happens is quite simple. The tokens are moved from one Blockchain to another. In the case of Binance, the ERC-20 token is swapped for the BEP-2 token.
As many projects want to benefit from the exposure that Binance is creating, these projects then decided to create a structure where parts of their tokens are available as BEP-2 tokens, while remaining parts of their tokens solely as ERC-20 tokens, or even as their mainnet tokens. This results in interesting structures between these blockchains and innovative ways of performing these swaps.
What is ChangeNOW Token Swap?
To start off, the thing that ChangeNOW is good at, changing things, does not only mean changing one coin for another. It also means, swapping one token from one blockchain to another. The current examples ChangeNOW is offering are the following;
- ERC-20 BNB to BEP-2 BNB
- Atomic Wallet’s AWC ERC-20 to AWC BEP-2.
- NOW Token ERC-20 to BEP-2 Now Token
The ease of the ChangeNOW swapping service that near instantly changes one token for the other is the same for the swapping system offered by ChangeNOW. What this means for the current projects that are considering to move their tokens from one Blockchain to another is the ease of implementing the already built framework for their own project. It would eliminate the pain of having to spend hours of work on creating difficult token bridges or dedicating your precious developer time on exploring the current options.
ChangeNOW has already explored the options that are there and would only tweak the current framework to the likings of the project, instead of having to create an entirely new framework. That’s efficient for both parties and your community will only experience an efficient manner of swappings their tokens for the actual coins.
I’ve heard enough, where do we go from here?
As mentioned before, the list of pros is clearly bigger than the cons here. The cost of development time clearly ways higher than the efficiency offered by an already built framework that’s ready to use. Does it happen that you’re actively searching and exploring your options on how to perform the migration to your mainnet, then look no further!
We are more than happy to discuss the options and see what our service could do for you. You can reach out to use through either Telegram — https://telegram.me/xenaNOW or send a detailed e-mail to [email protected] with the services that you would need assistance with!
Originally published at https://changenow.io on August 29, 2019.