The POA20 Bridge was the first EVM cross-chain production bridge in existence. Leveraging the underlying Native to ERC20 TokenBridge technology, the POA20 bridge is used today for secure, fast, and inexpensive token transfers between the POA Network and the Ethereum mainnet. To use the POA20 Bridge, a user simply visits the bridge webpage, activates a web3 wallet, selects the amount of tokens to transfer, and clicks send. Thats it!
Behind the scenes, native POA is locked in a smart contract and POA20 is minted on Ethereum. Users can interact with POA20 on the mainnet, and when they are done, transform their POA20 back to POA native coins using the same bridge.
POA20 can be thought of as the official POA token on the Ethereum network. POA native coins are transformed into POA20 through the TokenBridge technology. POA20 is an ERC20 token, which means additional services are immediately available for use. These include a selection of exchanges (both decentralized and non-decentralized), lending platforms and payment systems which are only accessible on the mainnet. POA20 can be used with these services, then easily transformed back to the POA Network as native POA. The POA dual token system creates the best of both worlds - accessibility to the mainnet infrastructure and the ability to transfer and use POA on a fast and inexpensive network.
The ERC20 to ERC20 Bridge extends the TokenBridge functionality to provide token transfer capabilities between any two EVM (Ethereum Virtual Machine) based chains. The functionality is similar to an atomic swap, where users can swap token “X” in Network A to token “Y” in Network B. The technology allows projects to extend their reach and leverage sidechains for different uses. Interoperability opens the door for collaboration among projects, test networks, and others within the broader ecosystem.
The xDai chain uses the ERC20 to Native TokenBridge functionality to provide fast, inexpensive and stable transactions. This bridge allows users to transform DAI (an ERC20 stable token) on the mainnet into xDAI on a compatible chain. xDAI tokens can then be sent quickly and with minimal cost on the xDAI network. The circulating supply always remains the same, as DAI are locked in a smart contract when users are transacting with xDAI. The xDAI chain has been a breakout success in the Ethereum community, providing an easy way for vendors to accept a stable cryptocurrency. We look forward to more exciting use cases as additional projects embrace this interoperability protocol.