One of the biggest barriers to blockchain adoption over the past few years is a serious lack of interoperability. While certain ecosystems are phenomenal in providing developers with a secure space to create DeFi applications, the inability to securely transfer assets across chains has led to a halt in adoption.
Why multi-chain matters in 2023: Case of Pantos
No matter how impressive a singular digital asset is, if users are unable to transfer it to other chains, there is a huge inherent risk. For users, if an asset only exists on one chain, it is stuck on that chain. They can’t use it as liquidity on another chain. Most bridges that facilitate the transfer of assets between chains haven’t repeatedly broken users’ trust.
This creates a certain reluctance to invest, as one dying blockchain could freeze millions of dollars worth of assets on its chain.
Equally, even for successful DeFi applications, the lack of utility on other chains or within other applications leads to a restriction on the success of their utility tokens. The only way to overcome this and truly unlock the potential of the broader DeFi and Web3 would be an infrastructure layer that facilitates a seamless flow of value and data between chains.
The Pantos public beta is live!— Pantos (@PantosIO) February 14, 2023
Experience the power of multichain tokens. Be part of shaping the future of blockchains.
Read more: https://t.co/0rG0tHziVz#Pantos #Multichain #Interoperability pic.twitter.com/nJ0zMQ5gfg
Interoperability has been an important topic in the blockchain industry for many years. Most recently, Pantos, a multichain token system that came out of the European exchange Bitpanda, has released its public beta. One of the reasons Pantos is grabbing the headlines is that it lets anyone create multichain tokens with ease, even if you don’t know coding.
In this article, we’ll dive into multichain tokens, demonstrating how developers can use Pantos’ new token standard PANDAS to enter into the world of full web3 interoperability.
What Is the Pantos Multichain Token Standard?
Pantos recently announced their multichain token standard - known as PANDAS (Pantos Digital Asset Standard). The main objective of this launch is to bring a multichain token system to as many people as possible, paving the way for true web3 interoperability. At present, there are seven leading blockchains supported by the Pantos testnet:
- BNB Chain
Beyond this, they are currently outlining plans to support even more non-EVM and EVM chains, allowing as many Layer-1 and Layer-2 chains as possible to enter into this interoperable future.
For developers, this takes away the strain of selecting a single blockchain network as the sole home for their applications and assets. With Pantos, they are able to freely transfer assets across distinct blockchain protocols in a decentralized manner.
The PANDAS standard even ensures that developers have access to this flexibility from day one. When designing and crafting their tokens, they can use this new standard to deploy their assets onto a variety of different blockchain systems, without the need for ongoing maintenance.
Far from just being an idealistic promise, the ball is truly already in motion with Pantos. Beyond just new tokens, Pantos also allows developers to wrap the native coins of any of the supported chains that we mentioned above. Each of these wrapped coins are 1:1 backed by the real asset, with smart contracts ensuring that they can be redeemed anytime that a developer or consumer wants.
To wrap a native token, Pantos has made the process as easy as possible:
- Choose the Asset - Developers select which of the native tokens they want to wrap and process.
- Wrap - Users then select if they want to wrap or unwrap the native token that they’ve selected.
- Quantity - A user will then type in the total amount that they want to wrap or unwrap.
- Confirm - Once all these fields are filled in, users then only need to confirm the transaction.
The ability to wrap tokens or create multichain assets provides developers with a whole new system to take advantage of. This is revolutionary for everyone that works in or uses decentralized assets on a regular basis.
Pantos unlocks new opportunities for multi-chain technology
There are two main groups that stand to benefit from the revolutions that Pantos offers. First, developers that have been looking for a way to increase the scope of their new tokens. Being able to launch a token on multiple chains at once will radically boost their utility and appeal, helping developers break into new markets.
Beyond the specialized developers, absolutely anyone who wants to deploy tokens has something to gain from Pantos. For a digital creator that lacks coding skills, the ability to create and deploy tokens removes another barrier that many have been stopped by. Instead of having to recruit people with specialized knowledge, this empowers creators to start building within the world of Web3 without coding skills.
Instead of a select handful of individuals being able to create tokens, Pantos levels the playing field for everyone.
Over time, with one more barrier to adoption being removed, we’re likely going to see an even higher number of cryptocurrencies launched in any given year. Especially in regard to utility tokens for DeFi projects, the panacea that is Pantos will help them tap into newer markets faster than ever before.
The recent announcement of the Pantos has not disappointed the crypto community. With over five years of experience going into their research, the multichain token system represents a fundamental moment of change for the industry. While their initial announcement is groundbreaking, their future promise of expanding to even more EVM and non-EVM chains demonstrates their commitment to improving upon their product.
As these changes come into effect, the majority of Web3 applications are going to be impacted positively. By offering reliable infrastructure, developers and project managers will be able to rapidly create new multichain assets. Beyond just flexibility, this opens the door to a truly interoperable system for all.
We cannot wait to see just how great this impact on the world of Web3 is. Pantos, and the blockchain industry, have an exciting few years ahead.