Hey guys, recently we’ve had many requests to build bridges between Incognito and other networks. As many of you know, Incognito currently utilizes a mix of trusted and trustless bridges (see our approach here), while we transition to full decentralization.
A pragmatic approach to decentralization
Incognito’s Portal v.3 and subsequent iterations aims to serve as a universal trustless bridge. However, the cryptoverse is very large, and this will take time. In the meantime, from an operational point of view, it’s good to decentralize the building of trusted bridges.
So this topic is about putting the ball in your court. Anyone can build and maintain trusted bridges.
Some examples of trusted set ups with sizeable traction:
- wBTC: 100k+ BTC locked
- renBTC: 19k BTC on the Ethereum network (feel free to argue if Ren’s set up is trustless)
- USDT: $17B supply
There are a few ways this can be done, the simplest of which I will detail below. Bridged tokens benefit from privacy, can be added to the pDEX, and can even have their own incentives.
How to connect a new network and its tokens
The “creator” (core team of a project or trusted community entity) needs to:
- Create a privacy version of their token on Incognito. You can do this easily from the Incognito app.
- Verify this privacy version. To do so, the creator simply needs to fill out a short form, also available in the Incognito app.
- The creator will need to set up own custody wallets for both networks (Incognito and bridged network).
- Prove to its community that it’s backed 1-1, or whichever mechanism you choose.
- Create functionality to verify deposit proof of an external Coin and send Incognito version of the Coin to the user.
- Add your coin to the Incognito DEX, and maintain liquidity (optional).
Trusted bridge code example -->
As with all trusted set ups, it is generally more sensible if core teams or entities are involved in such initiatives. These people are trusted by their communities, are connected to token holders able and willing to provide liquidity, and can spread the word about this integration to their users.
The idea detailed above is just a simple example of the possibilities. If you want to see other blockchain networks integrated with Incognito, or have their tokens listed on the pDEX, bring this idea to their core teams and communities!
Find more info how Incognito implements trust-less bridges: