Cryptocurrency users have not been able to trade on multiple blockchain platforms with the same decentralized platform due to shortcomings of the existing protocols. They are unable to transfer or swap their digital assets from one blockchain to another. The synapse network has emerged as the first cross-chain investment ecosystem where crypto assets can be transferred and swapped between different blockchains using the same decentralized application.
Today in this blog we will take a look at the world’s first cross-chain cryptocurrency ecosystem, Synapse network, its features, and cross-chain technology.
Synapse Network Overview
Synapse is a cross-chain AMM and layer protocol that provides interoperability across various blockchains. Working as a liquidity protocol it enables communication and interaction between blockchains. With decentralized transactions between L1, sidechain, or L2 ecosystems, Synapse facilitates asset transferring, and swapping between the blockchains. According to the Synapse network whitepaper, it uses the “cross-chain technology” to develop a network that enables the developers to create cross-chain decentralized applications (dApps), decentralized exchanges (DEXs), DeFi, lending platforms, yield aggregators, margin systems, and derivatives markets that can function across different blockchains.
Support Cross-Chain Cryptocurrency Transactions
Being the first application based on cross-chain protocol, the Synapse network can be used to transfer digital assets between blockchains compatible with Ethereum Virtual Machine (EVM). With Synapse Network investors can invest their funds in multiple projects on different blockchains such as Ethereum, Binance SmartChain, Solana, and Polygon. Synapse is in the process of developing its own blockchain, Synapse Chain, based on a proof of stake consensus mechanism, which will further simplify the cross-chain transactions.
Fundings Received
The network has raised funds worth $2,000,000 from venture capital and community funding from Black Dragon, Dutch Crypto Investors, Moonwhale, Chainlink, OIG, ICO HUB, Crypto Weekly, Minted Lab, and CSP DAO. Synapse network presale was announced in July 2021 and listed projects based on multiple blockchains, allowing the investors to invest in various cross-chain assets.
About Founders
Synapse Network was co-founded by Paweł Łaskarzewski who is a technology executive and enterprise solution architect and has worked for several global brands including Citibank, EuroSport, and B/E Aerospace. Michał Domarecki, also a co-founder of Synapse network is a serial entrepreneur and investor. He is known for founding various IT, transport, and logistics companies. He also worked with cryptocurrency companies Crypto.com and Gems Reviews.
What is SYN?
SYN is the Ethereum-based native utility token of the Synapse network used for buying, selling, and trading cryptocurrencies on exchanges such as Binance, Crypto.com, Avalanche, Coinbase, Ethereum, BKEX, and Gate.io. SYN is also used for making payments across blockchains for using dApps, DeFi and DEXs. Users are allowed to vote for the future of the protocol through SynapseDAO. SYN is also awarded to network liquidity providers.
What is Cross-Chain Technology?
With existing blockchain protocols, decentralized projects are used only on their native platform and cannot be used on different blockchain networks. The cross-chain technology allows users to access a decentralized application across various networks. Synapse is the first network to develop a cross-chain cryptocurrency investment platform.
How Does Synapse Network Work?
Synapse protocol is composed of a cross-chain messaging framework and an economically secure method of consensus to validate transactions across blockchains. Synapse uses advanced smart contacts that allow developers to create cross-chain applications on any blockchain. Should it be monolithic base layers, roll-ups, or application-specific chains, Synapse offers interoperability support between every blockchain protocol. The users are enabled to swap their assets across EVM and non-EVM blockchains through the applications built on the Synapse bridge. Due to its feature of interoperability, it is the most sought cross-chain liquidity protocol.
Consensus Mechanism
It needs the signature of two-thirds of the MPC validators for a transaction to reach a consensus on the Synapse network. The validators using SYN as a mode of payment are given discounts on gas charges on the Ethereum network. The SYN assets of validators are held if they perform irresponsible or malicious activity on the network.
Following are the core components of the Synapse protocol:
- Cross-chain Communication
- Synapse Bridge
- Optimistic security model
Optimistic Security Model
Synapses have taken various security measures to beef up the security of applications on the interoperable protocol. Synapse deploys cross-chain multi-party computation (MPC) validators which use threshold signature techniques (TSS) to protect the network. Each validator is responsible for maintaining security on the network which is monitored by the MPC validator group.
To ensure the security of cross-chain applications, Synapse has introduced an optimistic verification system to validate transactions. In this mechanism, off-chain participants are enabled to identify malicious transactions and report a faulty transaction when fraud is detected. In an optimistic verification system, the cost to attack the network is to co-opt all N actors, while in the conventional model, the cost to attack the network is the cost to co-opt M number of validators.
Summing up
Synapse network, being the first cross-chain cryptocurrency investment platform, allows all users to invest in digital currency projects in different blockchains and transfer and swap their assets across chains instantly at low gas charges. With the Synapse network, developers are also empowered to develop cross-chain dApps and DEXs that work on multiple blockchains with an interpolable protocol and optimistic security model.
