Polkadot and Ethereum are two separate networks, still isolated from each other and therefore unable to communicate with each other.
However, a new LiquidApps initiative, in collaboration with Bancor, wants to build a cross-chain bridge between your base on Ethereum and the parachains in Polkadot.
LiquidApps is a decentralized development solutions provider, while Bancor is a protocol on Ethereum for exchanging non-custodial tokens using pooled liquidity (i.e. a DEX).
Polkadot is a project born in 2016 that aims to become a leader in interoperability and collaborative development between different blockchains. In fact, it has a hub-and-speak system of interoperable and interconnected parachutes to build a complete, scalable and decentralized financial ecosystem.
Already since 2018, Bancor has expanded outside of Ethereum to offer exchanges with EOS and POA Network, but now it wants to build together with LiquidApps a real bridge with Polkadot.
A bridge between Polkadot and Ethereum
Currently, Ethereum dApps cannot tap into liquidity pools in Polkadot, and vice versa. In particular, decentralized exchanges are being built on Polkadot's parachutes that could allow for better performance, with faster and cheaper exchanges, but they would need to be able to extract liquidity from the DEXs on Ethereum.
Bridging will use LiquidApps' universal interoperability solution, DAPP Network, and will allow Bancor to expand its liquidity pools by linking dApps operating on Polkadot's parachains, for fast cross-chain exchanges between ERC20 and DOT tokens.
The DAPP Network cross-chain bridge, created in September 2020, is already being used by Yup and DAPP Account DAO, which is a decentralized social media platform and cross-chain performance aggregator.
The CEO of LiquidApps, Beni hakak, He said:
“LiquidApps is proud to play a critical role in blockchain interoperability by collaborating with Polkadot and Bancor. By providing the underlying technology to power this cross-chain bridge, we are helping to lay the foundations for an efficient, scalable and durable decentralized ecosystem. "
The Bancor CTO, Yudi leviadded:
"Interoperability is crucial to the development of multi-chain DeFi and we are delighted to extend Bancor's liquidity network to Polkadot with LiquidApps."