👍TIF Token Bridge

TIF unveils Token Bridge, a groundbreaking BaaS (Bridging as a Service) innovation that blends token bridging and cross-chain token exchanges.

Token Teleporting: Introduction

Bridging tokens and Exchanging (or Swapping) tokens are terms often misconstrued as interchangeable. However, token bridging and token exchanging between networks stand apart, despite both facilitating asset movement between different networks.

In bridging, an asset retains its identity and total supply while moving across different networks (often from an L1 to an L2 network). The original asset is typically locked on the source network and then represented (or minted) on the destination network. Bridging is always a cross-chain operation.

Token exchanging involves trading one token for another, potentially spanning different blockchains. It's not about transporting the same asset, but rather acquiring a distinct one. Token exchanging can be on-chain operation and cross-chain operation.

Token Teleporting: How It works

Problem to Solve

A token that originates on a specific blockchain network, designated as Blockchain 0 in Scheme 1 below, can undergo a bridging process to facilitate its transfer to other interconnected networks, represented as Blockchains 1, 2, 3, and 4 within the same Scheme 1.

Pros of the Bridging approach

1. Users can take advantage of different blockchains' unique features without having to rebuy assets on another chain, thus maintaining their investment positions.

2. Tokens can move between the origin blockchain and any other network that supports the bridge.

3. The process is established and well-known, generally avoiding security breachesб at least for networks and bridges that have been in existence for a significant amount of time and have a track record of reliability.

Cons of the Bridging approach

1. Bridges introduce additional complexity to transactions and have been identified as potential security risks. They are frequently targeted in significant hacking attempts and exploits, leading to considerable losses. This concern is particularly relevant for newer and unproven solutions in the DeFi sector.

2. Tokens can only move between the origin blockchain and another network if the bridge between them is supported. For instance, a token bridged from Blockchain 0 to Blockchain 1, and from Blockchain 0 to Blockchain 2, cannot move directly from Blockchain 1 to Blockchain

3. Bridges may lock tokens for a duration, ranging from a few hours to weeks.

4. When tokens are transferred from networks with high gas fees (like Ethereum) to ones with lower fees, users may want to avoid returning to the high-fee network for further transactions. However, this is often not possible without first going back to Blockchain 0.

Problem Statement

When a token has been bridged across multiple blockchain networks, it is essential to enable direct transfers between any two of these networks without going to the original blockchain first. This process should optimize for minimal transaction fees and utilize established protocols to reduce security risks.

Solution

When a token has been bridged across multiple blockchains, the TIF protocol enables direct transfers between any two of these networks without going to the original blockchain first. The TIF protocol utilizes its infrastructure, including the core smart contracts and the relayers network, to keep the fees associated with this type of cross-chain operation low.