The Kyber Network an on-chain liquidity protocol which powers secure token exchange in any decentralised application (dApp), launched ‘Waterloo’. It is a project which connects proof-of-work and delegated proof-of-stake-based networks, which work on Ethereum and EOS respectively.
In a recent blog post, they further describe the features and uniqueness of the Waterloo project.
Connecting blockchains in a decentralised and practical manner is a complex one, but past versions have existed. BTC relay is a relay which works in one direction from Bitcoin to Ethereum. Waterloo is a bi-directional relay, processing transactions from Ethereum to EOS and vice versa.
According to Kyber, Waterloo is:
“an efficient and fully decentralized way to implement an EOS light client as an Ethereum smart contract, and an Ethereum light client as an EOS smart contract.”
Users and developers can thus communicate and transfer assets between the two blockchains. The ease, flexibility and speed with which this cross-chain exchange can occur have implications for the blockchain ecosystem in a range of applications.
Kyber’s expertise lies in easy-access token swaps, with its on-chain liquidity protocol allowing decentralised token swaps to be integrated into any application. It wishes to promote easy and efficient value exchange in the entire cryptocurrency and financial ecosystem. The Waterloo project is just one example of the innovation it is doing to ensure “a world where any token is usable anywhere”.
Kyber is still working on finalising the project. While it has developed the Ethereum and EOS connections, there is still work to do to make Waterloo a production level working bridge. As it is decentralised, Kyber needs to decide on how to incentivise relayers. It is considering charging fees for using the bridge and distributing these to the relayers.
The organisation is working on how to make the project a collaborative community effort.