Near should seriously consider deploying a bridge to Binance Smart Chain (BSC) - the Dragon Bridge - as soon as the Rainbow Bridge testing and rollout are complete. Low-hanging fruit (EVM), keeping up with rapidly evolving tech trends.
Background / Market Trend
As the congestion and excessive cost of transacting continue to get worse on Ethereum, the Binance Smart Chain has proven what many Eth OGs thought was impossible: the pain was so strong it pushed users to other networks.
Over the last three months there has been a tsunami of users exiting the Ethereum ecosystem and going crazy on the exploding DeFi ecosystem on BSC. This trend is likely continue with mounting speculation on whether BSC will flip Ethereum (let’s create a Pulse market for that )
Opportunity / Challenge
The BSC exodus validates our hypothesis that users will migrate to Near as our superior technology continues to come to market.
It demonstrates that we have been on the right path by building the Rainbow Bridge with Eth to makes the transition for users as smooth as possible.
However, there is a massive challenge: there may not be many users left on Ethereum by the time we are mature enough to welcome the masses.
We also know that being able to participate in hot, liquid, Defi markets if or when needed is a very strong consideration for projects when choosing where to develop. I think the Dragon Bridge would help us attract more projects, knowing that they will be able to easily access both the Ethereum and the BSC Defi ecosystems if needed, without having to endure the potential drawbacks of either.
We must find ways to stay relevant, servicing our (future) users where they are, maximising optionality and making it attractive for devs and do so in a way that does not detract form the Core team efforts. I believe the Dragon Bridge could be a ‘low-hanging fruit’ that could add enormous value.
Technical Assumption / Other considerations
With my limited technical understanding, I am assuming that a Dragon Bridge deployment would be relatively straight forward as BSC is an EVM. I would welcome and highly encourage input from the devs on this point.
Some considerations would be:
Dragon Bridge v1: BSC to Near Mainnet
a. Cross-chain asset consistency: how to ensure that an ERC-20 which was initially sent over to BSC (would be entering Near as an BEP-20), is recognised and becomes the same Near token as the same asset sent over the Rainbow Bridge as an ERC-20. (i.e. ERC-20 UNI or BEP-20 UNI would both converge as nUNI regardless of the bridge they come down)
Assumption : it would be a lot cheaper for people to send assets into NEAR from BSC, including from other Networks other than Ethereum. BSC is likely to become a cheaper hub.
Dragon Bridge v2: BSV to Near EVM (EVM to EVM )
a. Known Unknowns on my side, I’ll just sign post it here for now. Welcome discussion
I hope that we can start a conversation that hopefully informs the Near roadmap. Let me know if you agree with my observations of the market, benefits of creating a Dragon Bridge, technical considerations, or anything else that you may consider relevant.