GEMMA Bridge
GEMMA Bridge
A token bridge is an interoperability protocol that allows users to move their GEM20 tokens between networks quickly and cost-efficiently.
GEMMA token will be the coin of GEMMA Blockchain, as well as it will be available on other blockchains namely, Tron, BSC, Polygon, Ethereum, and Solana in the form of wrapped token. The token/coin could be transferred among these blockchains via GEMMA Bridge. Bridges are collateral-based systems to avoid centralization, and do not require trust, allowing users to transmit GEMMA tokens from one blockchain to another. The blockchain supported by the bridge is as follows.
GEMMA Bridges will enable the sharing of data as well as the traffic between different blockchains. Simply put, GEMMA Bridge will allow for interoperability, enabling a user on GEMMA Network to receive GEMMA token from BSC and vice versa. The crucial role of interoperability is that it increases mass adoption in the blockchain space. Users need not be reluctant to start on one chain as they can seamlessly access information, protocols, and value from another chain.
Example, Bridging between GEMMA Network and Solana allows the GEMMA tokens to be locked in GEMMA Network and minting a fresh token onto Solana. The amount of tokens in circulation remains unchanged, but it is divided into two chains – GEMMA Network and Solana in this case. If GEMMA Network had a total of ten tokens and sent five of those over to Solana, GEMMA Network would still possess ten tokens (five locked), however, an additional five of them will be minted on Solana. If the holder of the minted tokens intends to redeem them at any point, they can burn them from Solana and unlock them on GEMMA Network. As GEMMA Network always contained a locked copy of the token, the value of the token remains consistent with the market price of GEMMA Network. This lock-and-mint/burn-and-release process stabilizes the cost and amount of the tokens sent between two chains.
Bridges communicate with blockchains in diverse ways. The process for data exchange can be divided into trusted and trustless processes. GEMMA will be a trustless bridge. The trustless system does not require the users and developers to trust any centralized entity or a federation to transfer tokens and data from one chain to another. On the other hand, trusted bridges have a federation of re-layers to communicate and bring tokens and information from one chain to another.
Multisig bridge has a structural problem in which the user must trust the bridge operator. The Collateral Bridge was developed to overcome this and decentralize the bridge. GEMMA Bridge is a form of collateral bridge. The concept of collateral is included in the collateral bridge. The subject performing verification, one of the roles of the operator, deposits a larger amount of collateral in the bridge than the transmission amount of the trader to prevent financial accidents. The Collateral Bridge is considered an efficient bridge that can function even in an environment that no trader can trust. The operation method is similar to that of a multisig bridge. When the user deposits the amount to be sent to the bridge, the verifier checks who put the amount and locks the bridge. If the transmission is successful, it is unlocked and withdrawn from the bridge. In the process, if someone steals the deposited amount or abnormal behavior occurs, the verifier of the collateral bridge pays part of the deposited amount as collateral to the user and compensates.
The Collateral Bridge is also used for Peace Bridge, a project that connects Ethereum and Ethereum Classic. Dogethereum Bridge, which is forked from Lightcoin, also uses a collateral bridge method for Dogethereum Bridge, which transmits tokens to the Ethereum network.
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