Why a decentralized ETH <=>BSC bridge?

 Tixl announced today that they finally launched their decentralized ETH<=>BSC bridge.

What does being decentralized mean?

Is it fair if I just say: decentralized is safer and faster than centralized?

Let's just compare a Centralized Exchange (CEX) versus a Decentralized Exchange (DEX). Or Binance versus Uniswap.

If you want to buy or sell a crypto in Binance, you have to go there, sign-up, sign-in and transfer your money to a wallet the CEX will keep there. Then you buy or sell whatever you want. The only player that knows how much money you have there is CEX. If something happens and they get themselves hacked (never seen that happening in the past...), the hackers could steal all your cryptos.

When you talk about DEX (or Uniswap, in this example), all you have to do is connect your wallet to their system. They will only facilitate the exchange (coins go from one person to another and vice versa) and, as soon as it is done, your new coins are in your wallet, under your own security procedure.

Just to be fair: in my opinion, DEX is totally "you will be responsible for everything and anything". So, if you decide to transfer you cryptos to a non-existing address... that's it. While CEX can and should have mitigation plans for situations like being hacked. An insurance would be appropriate: their clients wouldn't lose their money. But what would be the cost for such insurance? And how would it reflect on their fees?

Well, the idea here was to just give a brief idea of what being decentralized means. Hope I made it.

What did the team mean by decentralized bridge?

That was the first question I made when I read their article. To understand that I had to read some other articles and understand "what is a node?".

When I wrote about the Tixl Staking Program, I mentioned the revenue the bridge would generate. That is supposed to be 0.2% of the Total Locked Value in US$ by the bridge or, in other words, the amount of money that went through the bridge. Do you agree that is a really low value? Suppose you have this system generating US$ 2,000 for every US$ 1M that it transports running in your computer. Now imagine something happens to your computer and it stops working. Now you have no revenue until you fix your problem. But in the todays world, if this happens repeatedly, people will just say "this thing doesn't work, I won't use it again". Yeah... you just lost all your income.

Ok. Now replace the "computer" I wrote above for "node". If I have my system running in many different nodes, preferably in different physical location, if something should happen to one of the nodes and it stops working, the other nodes will take the work that was done there and the system continues to work. You don't lose your income and your users don't say "what a crappy system that is always offline... I'm giving up on it".

This is the first version for the bridge. We should be congratulating the Project Team because they gave birth to this solution already as a decentralized solution while many other organizations would probably started as a stand-alone solution, then a centralized solution and finally a decentralized one (if they ever got there - and believe me... once you have something live and working we always seem to have priorities other than just keeping this working).

This is just the beginning

These are my thoughts and this is not financial advise nor am I a financial advisor. I just like the subject and I'm very excited to see great things happening.

When the Tixl Project launched their ETH/BSC bridge, for their own use and benefit, they didn't imagine what kind of business problem they were solving for many other projects. On the next day after the go-live, many other crypto-projects were asking if they could use the bridge.

It is launched. It was taking kind of long but now I understand why. Now they will start to rollout the solution to the other projects and the bridge will generate revenue. I will mention again my Tixl Staking Program post because there I mentioned that the revenue generated by the bridge would be used to buy $TXL to distribute to the stakers. I also mentioned there that initially, they would take some $TXL from their treasury (as a one-time) to provide the first bulk of liquidity for the staking pool.

Now I'm thinking "oh, this bridge could generate so much cash and $TXL's price could be so low (imagine them buying $TXL under US$ 0.40 - today's price), that maybe the team wouldn't even need to jump into their reserves." How good would that be?

Yeah! Once again, I see that $TXL has no option but to go up. And it is going to be steep! I'd try to jump in sooner than later. When this one jumps, it is something like 40%-50% in a day.


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