- Mangata Finance is on its way to solving a major problem using Native Cross-Chain Swaps.
- In the long run, Mangata could potentially substitute CEXs with its revolutionary solutions.
The Polkadot blockchain is not slowing down with its network advancement, as more and more protocols turn to the network to integrate and build new features.
Polkadot recently took to X, formerly known as Twitter, to highlight the importance of MangataFinance, a blockchain protocol for decentralized exchange built on the Polkadot network. The platform currently utilizes Polkadot’s technology to eliminate the need to bridge and wrap assets. Using a native cross-chain swap, users of MangataFinance can control their tokens.
Control your tokens with native cross-chain swaps🔁#OnlyOnPolkadot thanks to Polkadot finality, which proves execution correctness to other networks.
Discover how @MangataFinance uses Polkadot tech to eliminate the need to bridge & wrap assets👇 https://t.co/fAWmUPddd2
— Polkadot (@Polkadot) August 9, 2023
In an official blog post, Managata Finance broke down the importance of Mangata and the gaps it intends to bridge.
Mangata is a multi-rollup interchain infrastructure designed for native cross-chain swaps. It leverages zero-knowledge proofs, decentralized sequencers, and two novel mechanisms to carry out trustless cross-chain communication: proof of finality and rolldowns.
As the blog post further explains;
“The multi-rollup provides a trust- and risk-minimized architecture compared to traditional bridges and avoids centralized parties or additional layers of economic security. It includes escape hatches in its framework and describes a new convenient way for users to expedite deposits: Ferries”
The ZK-rollup with universal connectivity; Mangata
Mangata is attempting to solve a major problem in the Polkadot ecosystem. At present, transferring value between major crypto ecosystems in a trust-and risk-minuses way is still a major challenge.
Layer 2 rollups are the go-to scaling solutions, as they have the basic bridging of tokens thoroughly figured out, cross-chain transfers of value between Layer 1 networks, on the other hand, have yet to reach their final form.
Already existing cross-chain solutions depend on centralized platforms like CEXes or require additional trust assumptions that involve users having to hold bridged assets obtained from bridges. These solutions currently come with their own sets of risks that are deemed unacceptable by many in the long run.
At this time, centralized exchanges are the most popular solution for cross-chain transfers. However, users planning to migrate from Ethereum to Polkadot will need to deposit their ETH to a centralized exchange, swap it for some DOT tokens, and withdraw it to Polkadot.
Even if bridges boasts of huge TVLs, they are yet to exit the incubation phase. In the long term, they might not be a sustainable option, or remain the go-to solution for cross-chain value transfer.
These are some of the limitations that Mangata attempts to address. Mangata attempts to function as a ZK-rollup with universal connectivity to a handful of EVMs that can also coordinate transfer in third chains. However, with Mangata, bridging and wrapping assets traditionally will no longer be an option.
“Our architecture offers an app-specific chain that is positioned as a layer on top of multiple blockchains. All tokens enjoy full L1 security. The chain has decentralized sequencing, supports cross-chain trading with native assets, provides escape hatches as a safety mechanism for traders, and thus lays the foundation for cross-chain atomic swaps.” Mangata Finance explains.
