- One of the leading EOS block producers, sheos21sheos, also know as shEOS, has released a new second layer protocol that enables cross chain movement between Ethereum and EOS.
- The aim of the protocol called EOS21 is to give developers the ability to easily teleport apps and tokens between the Ethereum and EOS networks.
We suspect the protocol was designed with the intention of capturing some of Ethereums market share of the dApp economy by providing a simple solution to port over its token, apps and more importantly its users.
How EOS21 Protocol works
The EOS21 protocol introduces a peg between Ethereum ERC20 token and EOS tokens called EOS21. As per the official press release:
ETH (ERC20) –> EOS21 (peg) –> EOS (tokens)
The EOS21 Protocol consists of three dimensions:
Dimension 1 – ERC20 token freezing
A Blackhole contract is signed on the Ethereum blockchain to perform the absorption of ERC20 tokens and provide information for the destination chain. Once ERC-20 tokens and the account are sent to the Blackhole, they become non-fungible.
Dimension 2 – EOS token authorization
This is an off-chain Oracle program which keeps track of the Ethereum transactions and authorizes the distribution of EOS tokens.
Dimension 3 – EOS token distribution
This dimension happens on the destination chain (EOS), where token contract distributes tokens to EOS accounts according to the information provided in Dimension 1.
EOS21 Protocol – the Ethereum killer
While it offers similar features as Ethereum, EOS is said to do it with increased efficiency. EOS ecosystem has many contributors and one of the most active and interesting ones is a women-empowering development group cleverly named shEOS.
As we are witnessing a rising quantity of projects trying to migrate away from Ethereum, shEOS team has developed a solution which enables cross-chain movement of tokens between Ethereum and EOS.
The product is called EOS21 Protocol, and it allows widespread ERC-20 tokens or Ethereum based dApps to migrate from their blockchain of origin to EOS without the need to have a built-in pause/expiry function.
The team refers to this movement as Teleportation, as migrating tokens appear on the desired destination (EOS blockchain), but no longer exist in a fungible form on the source chain.
Scalability issues for Ethereum tokens and dApps
Ethereum network has become one of the most popular outlets for developers working on their dApps as well as for startups producing their own cryptocurrencies due to its smart contract feature.
This Swiss-based foundation was the first one to produce a more user-friendly solution for issuing smart contracts, even for those not thoroughly familiar with coding in Java, Python, Solidity, or some other programming language.
However, with immense success, came problems for Ethereum.
Since its blockchain can process only around 15 transactions per second, with all the projects leaning on the Ethereum system, the network became congested and sometimes inefficient due to its undeniable scalability issues.
In the meantime, new smart contract platforms began to emerge, with some noticeable benefits, mainly in scalability and speed. And one of the most impressive competitors is a Dan Larimer’s brainchild, EOS.
A truly open-source project
Looking at the blockchain industry today, we can say that one of the main issues of this technology is the shortage of cross-chain interoperability.
shEOS team asked rhetorically:
“How empowering would it be for developers to have the freedom to move their tokens to any chain they felt best addresses the needs of their particular project […] We think developers should have that technical and creative freedom, so we designed a protocol to make it possible,”
And indeed, developers looking to improve their Ethereum-based products could be getting a noteworthy alternative with the EOS21 Protocol.
This solution opens up a whole world of use-cases, as through EOS21 Protocol, EOS tokens could be paired with existing ERC-20 standard tokens. shEOS, in some scenarios, sees the possibility that transactions happening on the Ethereum blockchain could be authenticated via EOS, or vice-versa.
The EOS21 Protocol is a step forward in the right direction, especially because, as a real open-source based organization, shEOS invites everybody to use and improve their product.