The cryptocurrency space has become more interconnected as developers bridge the chain between the Ethereum and Tezos blockchains. With the launch of the Wrap Protocol created by Bender Labs, Ethereum-based ERC-20 and ERC-721 tokens will be made compatible with Tezos and Ether (ETH) holders will be able to interact with the Tezos ecosystem.
The Wrap Protocol copies Ethereum-based tokens to the Tezos FA2 token standard, meaning that these tokens can be used as a one-to-one representation of the originals without any technical difficulties or price difference.
Like Ethereum, Tezos has its own decentralized finance ecosystem, but unlike Ethereum, which has to wait about a year for this feature, it offers staking service. The new cross-chain bridge will therefore allow Ether holders to earn passive income.
Users of the Wrap Protocol users will be able to participate in management using the WRAP token that operates on both FA2 and ERC-20 infrastructure, therefore compatible with both Tezos and Ethereum.
Temporarily converting tokens to other blockchains also offers the possibility to avoid these fees if transaction fees are high on the first blockchain. Ethereum’s transaction fees, on the other hand, increased to over $ 30 on average.