In our past articles we have often talked about how to bring Bitcoin on the Ethereum network to enjoy the advantages of the latter (such as the speed of transfers and the various DEXs). Among the projects we have often mentioned there is one that we want to talk about today: pTokens.
What are pTokens?
This is simply a project that aims to create ERC-20 tokens to bring all non-Ethereum blockchains on Ethereum. At the moment pTokens is active on the mainnet with pBTC, which is an erc-20 token that allows bringing bitcoin on Ethereum. In reality, pTokens’ pBTC can also bring BTC on the EOS network, which makes it unique in the world. There are also other blockchains already in testnet phase, like pLTC (for bringing LTC on Ethereum) and pEOS (for bringing EOS on Ethereum). Other tokens already planned (but not yet available in testnet) are: pDAI, pUSDT, pETH, pEOSDT, pZEC, pTRON and others. A project with great ambitions that will make the cross-chain process almost a normality.
How do pTokens work?
All functioning pTokens and upcoming ones are pegged to their respective tokens/coins. This means that if we want to get 1 pBTC, we have to remember that its price is the same as 1 BTC. Hence, if at this moment 1 Bitcoin is equivalent to 9800 USD, when we mint 1 pBTC its price will be 9800 USD. Once transformed into pBTC, our asset can travel freely on the Ethereum blockchain and be used as a normal ERC-20 token. It will thus be possible to deposit it on any DEX (decentralized exchange) or on wallets compatible with Ethereum and ERC-20 tokens. Pretty cool, right?
While the process explained in this way seems to be very easy, the operation in the background is complex as it involves two different blockchains working together and verifying the amount of assets needed to create the new assets. In technical terms, this verification is called Trusted Execution Environment (experts will immediately understand what it is).
The great thing is that pBTC (or other pTokens) can be burned at any time to obtain BTC back. Thus if you decide to hold pTokens, be aware that you can exchange them back for the original Coins at any time through a quick and easy process. Peg-in and peg-out times are instantaneous while fees are currently among the lowest in the industry.
Besides pTokens there are many similar projects like: Wrapped Tokens, Keep Network, Synthetix, Ren, imToken and so on. DeFi is enjoying great success in 2020 and this explains why there are so many active and well followed projects like the ones mentioned above. To learn more about the project we suggest reading the technical whitepaper or the How it Works page available on the official ptokens.io website.
pTokens and the various integrations
Although it is a fairly young project, pTokens has already made important collaborations with well known names in the crypto and DeFi world. You can peg-in and peg-out pTokens directly from the Eidoo App (a well-known Ethereum, ERC-20 token, bitcoin wallet and DeFi exchange). Kyber Network and Bancor Network have also added integration to pTokens, allowing to swap pTokens for Ethereum or other ERC-20 tokens in the first case or Ethereum and EOS-Tokens in the second case.
Next comes Equilibrium which allows to lock pTokens as collateral to obtain a stablecoin: EOSDT (all this is possible directly through the Equilibrium interface). DMEX, the decentralized exchange), Paraswap, 1inch.exchange and Incognito are other methods to benefit from pTokens technology and get your favourite tokens in a few seconds (via quick swaps). Please refer to the integrations page to find out the latest news, rest assured that the team continues to work relentlessly on the various collaborations.
More info about pTokens
The pTokens project is transparent and shows the circulating supply at all times. Simply visit the dApp page to find out that there are currently about 30 pBTC in circulation (most of them on Ethereum, the rest on EOS). This page allows you to follow transactions one by one, both peg-in and peg-out transactions. There is also the Issue and Redeem feature from which it is possible to connect your wallet to get pBTC quickly without having to go through the above mentioned providers.
Who controls pTokens?
In its first iteration, the pTokens bridges are operated by Provable. Following a progressive decentralization approach, the governance and operations will then be shifted to a network of validators. The pTokens bridges will be operated by the validators (multi-TEEs operators) that will take care of validating the peg-in and peg-out processes via a shared effort (Multi-Party Computation). Provable will only serve as a technology provider – as such, it will be a founding member of the network, but it will have no control over the network itself. (ptokens.io F.A.Q.)
If the project is of your liking, here are their social pages (always very active thanks to a tireless staff) like: Twitter, Telegram (group not channel), GitHub, Medium and Reddit. We tried asking for support on Telegram several times and the answers were always very quick. We therefore recommend this method for any doubts or technical support.