Circle, creator of the US Dollar Coin USDC ($1.00), launched a mainnet protocol that allows users to transfer USDC between Ethereum and Avalanche, according to an April 26 announcement. Previously, Avalanche users who held USDC on Ethereum had to deposit their funds with a Circle partner or use a third-party bridge to transfer their USDC from one network to another. The new CCTP (Cross-Chain Transfer Protocol) protocol appears to eliminate this need for USDC bridges.
The team released a video on April 13 showing how the new system works. Unlike a traditional bridge, it does not lock the signals sent to its contract. Instead, it completely destroys them and provides a new signal to the receiving network. Users can buy this new show against bank deposit, putting up the signal or partners.
In the levels, the group said he expects CCTP to solve the problem of “pages” on the web 3 round. Currently, there are various types of non-cash USDCs floating around on different networks, many of which are the result of tokens from one network connecting to another. Now that there is a way to transfer coins from one network to another, the team hopes that these undocumented transactions will gradually decrease, making the token less complicated to use. The team said many of the biggest cross-chain protocols have already committed to using CCTP in the future, including Celer, Hyperlane, LayerZero, LI.FI, MetaMask, Wormhole and others.
Joao Reginatto, Vice President of Products at Circle, said he believes the new protocol will help improve liquidity and capital efficiency in decentralized finance:
USDC is a fiat-backed stablecoin issued by Circle. The company says every USDC supports dollar-dollar and her dollars. The users can mintc using the account and enter a medium and medium or one of his partners, such as the coinbase. Once they do this, they can access coins on various networks, including Ethereum, Avalanche, Stellar and Polkadot.
Users have lost billions of dollars in USDC and other cryptocurrencies due to bridge hacks in the past few years, as attackers have repeatedly discovered how to remove locked coins and bridge contracts to release they print on the receiving network without support. This has left developers wondering how to preserve bridges for future use as digital assets become more common.
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