Poly Network, the interoperability solution launched by the founder of cryptocurrency Neo, has formed a partnership with cryptocurrency exchange Binance’s decentralized finance-oriented blockchain to enable cross-chain interoperability.
Why it matters: The partnership could bring more developers and decentralized applications (dapps) to both Binance Smart Chain (BSC) and Poly Network, especially from the booming DeFi space.
- Poly said in a statement sent to TechNode that it hopes the BSC partnership will bring network effects, meaning the value of the network will increase exceptionally as network participation grows.
Details: The partnership will allow interoperability between dapps built on the two networks; they will be able to transact tokens and exchange information across different blockchain protocols.
- Poly said that $3 billion in tokens had already been transferred between its partner networks.
Context: Poly is one of two cross-chain protocols currently used by the Blockchain Services Network to achieve interoperability. The BSN is a Chinese government attempt to create a global “internet of blockchains.”
- Binance is the world’s largest cryptocurrency exchange by trade volume, according to data from crypto monitoring platform CoinMarketCap.
- The BSC was launched in September and is already used daily for transactions in the tens of millions of US dollars, data from dapp monitoring site DappRadar said.
- Binance’s decentralized cryptocurrency exchange runs on the Smart Chain.
- The public chain allows developers to build applications that are compatible with the Ethereum network, but offers lower transaction fees and higher speeds than Ethereum.
- Poly Network was founded by Da Hongfei, one of China’s blockchain pioneers. Da started the Neo network in 2013, and its native token is now ranked 26th globally in terms of market capitalization.
- Poly Network already makes several blockchain protocols interoperable: Bitcoin, Elrond, Ethereum, Neo, Ontology, and Switcheo.
Corrections: updated to reflect that Poly Network was started by the founder of cryptocurrency Neo, not the company behind Neo, as previously stated. Corrected text that implied Da Hongfei is involved in operations of Neo, Ontology, and Switcheo. An earlier version of this story erroneously stated that $3 billion had been transferred between Poly Network and BSC.