In a recent announcement to enhance the interoperability between blockchain networks, Aurora Labs has taken a bold move. Aurora Labs, a leading blockchain development company, has launched its highly anticipated Rainbow Bridge on the NEAR Protocol. This innovative solution aims to bridge the gap between the NEAR and Ethereum blockchains, enabling lightning-fast token transfers without hassle.Â
Fast Rainbow Bridge: Overcoming Limitations of the Classical Approach
The Classical Rainbow Bridge, used for bridging ERC-20 tokens between NEAR and Ethereum ecosystems, has faced challenges regarding time and efficiency. With a transfer duration of 4 to 8 hours, due to an optimistic approach and infrequent block transfers, users have experienced delays and limitations.
To address these issues, Aurora Labs has introduced three components to enable faster transfers:
- LP-Relayer: An off-chain service that holds liquidity in tokens on both Ethereum and NEAR sides, facilitating swift token transfers between the two ecosystems. It replenishes its liquidity using the Classical Rainbow Bridge.
- NearFastBridge: The NearFastBridge, a NEAR contract, securely locks tokens and initiates their transfer to the LP-Relayer once proof of a completed transaction on the Ethereum side is provided.
- EthereumFastBridge: The Ethereum contract allows the LP-Relayer to transfer tokens to users while generating token transfer events seamlessly.
With the introduction of these new features, the Rainbow Bridge has gained the capability to facilitate swift transfers of ERC-20 tokens from the NEAR network to the Ethereum ecosystem in just a few minutes. These transfers require an additional relay fee.
The Fast Bridge solution achieves decentralization and trustlessness by enabling multiple relayers to provide liquidity, creating a competitive market for fast transfers. Users can reclaim their tokens if a transfer exceeds the maximum time window of 4 hours or if there are issues with the relayer or fee. To reclaim tokens on the NEAR side, the relayer must provide proof of the finalized bridge transaction from Ethereum.
Transfer ERC-20 Tokens From NEAR To Ethereum
Previously, the process of moving tokens between different blockchain networks was often complex and time-consuming. However, recent developments have made transferring tokens from NEAR to Ethereum a breeze.
Users now have the option to transfer their ERC-20 tokens from the NEAR network to the Ethereum ecosystem using the efficient fast transfer function. This feature allows for swift bridging of assets, typically completed within a few minutes.Â
Within the Fast Rainbow Bridge, the relayer shouldered the burden of covering the transfer cost, alleviating users from having to pay the gas fees on the Ethereum side. The relayer assumes responsibility for the gas expenses and ensures prompt execution of the transaction, mitigating any potential fluctuations in gas prices.
The fee for utilizing the Fast Rainbow Bridge is dynamically calculated and paid in the same tokens being transferred. Currently, the fee structure comprises a base fee of approximately $20, along with 0.1% of the transferred amount.
Initially, the Fast Rainbow Bridge supports transfers of AURORA, WBTC, and USDC tokens, with plans to include additional tokens in the future. Presently, a NEAR account is required to initiate the transfer through the Fast Rainbow Bridge. However, the team is actively working on introducing the Fast Bridge option for the Aurora network.
Interoperability between different blockchains is a crucial factor in driving the widespread adoption of blockchain technology. The ability to transfer tokens between NEAR and Ethereum networks fosters a cohesive ecosystem where developers can leverage the strengths of both networks to create innovative applications and decentralized services.
