Bridge Mutual Becomes Cross-Chain with Solana Blockchain
Bridge Mutual Community,
Two days ago, we announced our collaboration with and transition to SushiSwap, a major milestone on BMI’s business roadmap. We have one more piece of great news to share with you before the launch of Bridge Mutual V2: The Great Reinforcement, a huge BMI protocol update coming by the end of October 2021:
Bridge Mutual is going cross-chain and has begun development on the Solana Blockchain!
This expansion will have a massive impact on the decentralized insurance space as a whole and the Bridge Mutual protocol.
At the center of the multichain version of Bridge Mutual will be the BMI token, which will be necessary to interact with both the Ethereum and the Solana version of the application. No additional BMI tokens will be minted — the max supply shall stay the same and will be addressing the demand from all the blockchain ecosystems involved.
What is Solana Blockchain?
Solana is one of the fastest-growing blockchain ecosystems and is frequently called “the most serious Ethereum rival.” It is decentralized, open-source, and achieves its consensus via the proof of stake and proof of history. Due to its scalability, low costs of transactions, massive funding, institutional support (with the likes of FTX and Andressen Horowitz), as well as its rapid speed of development, the SOL network gradually gains momentum and attracts increasing numbers of developers and users.
It currently hosts more than 400 dapps and has an average cost of transactions of 0.00025 USD and 400 millisecond block times, making it one of the fastest and most easily scalable blockchains in the crypto space.
Why did the BMI team decide to develop Bridge Mutual on Solana?
Building a reliable and market-tested coverage protocol on Ethereum was the team’s priority. Raising over 30 M USD in TVL soon after the protocol launch in July 2021 and the successful settlement of the first-ever coverage claim a couple of weeks later gave the team confidence that the protocol is ready to expand and be tested on other chains.
Going multichain is a natural next step that has been on the internal roadmap from the beginning; however, choosing which chains to spend time and resources on is a critical decision. As we worked on fleshing out our Ethereum-based protocol, we watched other blockchains carefully and assessed which chains would make a good fit once we had the development capacity.
There are no major coverage protocols currently operating on Solana. The Solana network has been expanding rapidly; we consider these perfect conditions to expand onto Solana and extend Bridge Mutual’s value proposition.
Entering Solana’s ecosystem exposes Bridge Mutual to new communities, users, and potential product integrations and will mark another milestone on the road to becoming the top multichain decentralized coverage protocol.
How will Solana’s version of Bridge Mutual work?
- Solana’s version will be a mirror version of the Ethereum application and will have the same mechanics.
- The two Bridge Mutual dapps will be completely independent of each other in terms of the coverage liquidity, listed protocols (coverage pools), and claims but will share the same BMI token.
- Both Bridge Mutual ETH and SOL will be available through the same interface, and users will easily swap between the networks.
- Both the Ethereum and Solana versions of Bridge Mutual will be powered by the same BMI token, which will be bridged in advance to Solana to provide rewards, and will be necessary for users of both networks to adjudicate claims.
How will this impact the BMI token?
There will be no additional BMI tokens minted, and the max supply will not increase. The Solana users and the Ethereum users will have to purchase the token to vote and interact with the network and its future DAO. The same principle will apply to future blockchain expansions as well.
When can we expect Bridge Mutual on Solana?
The team expects to develop the first usable version of the platform before the end of Q4 2021, concluding the year with Bridge Mutual on two blockchains. More information will be revealed as development progresses.
Solana is a high-throughput blockchain supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two. As the world’s first web-scale blockchain, Solana will unlock a whole new class of performant applications and facilitate larger-scale blockchain adoption. Utilizing a revolutionary innovation called Proof of History, Solana can drastically outperform any other existing layer 1 and provide fees at $0.00001 per transaction.
About Bridge Mutual
Bridge Mutual is a decentralized, p2p/p2b discretionary risk coverage platform that provides coverage for stablecoins, centralized exchanges, and smart contracts. Its platform allows users to provide coverage, decide on policy payouts, as well as share profit, and get compensated for adjudicating claims.