That’s awesome! How’d you do it?
Glad you asked. To make it work, we’ve created B-Loki, a token on Binance Chain which is specifically engineered to provide a smooth and fast DEX experience where all trades are executed on Binance Chain.
What’s the difference between Loki and B-Loki?
Good question. While we’re proud that Loki is fungible, private, and secure, B-Loki doesn’t maintain all of these properties. Rather, its main purpose is to allow trading on Binance DEX.
Cool. Can Loki be swapped for B-Loki?
Yes! Through the brand new Loki Bridge, which allows Loki to be exchanged for B-Loki (and vice versa) on Binance Chain. Functionally, the bridge lets you send Mainnet Loki coins and specify a specific Binance address where you will receive B-Loki.
Okay. But is the bridge secure?
Loki Bridge has been built with security in mind, and uses a mixture of best practice techniques to match the security of many of the top exchanges in the cryptocurrency world.
Phew. So how does it work?
Like an exchange, when you deposit Loki into Loki Bridge, you’re relying on that exchange to credit your account in order to trade on it. However in this case, as the bridge is crediting your B-Loki or Loki Wallet, you only have to trust the bridge with your funds while a swap is in progress. As soon as the bridge has finished swapping your coins, you have full control of them in your nominated wallet.
And it’s trustworthy?
We’ve sought legal advice on the creation and listing of B-Loki in order to make Loki Bridge as trustworthy as possible. After assessing the available options, the Loki Foundation has contracted the operation of Loki Bridge to a third party provider, Lunar8. JP from Lunar8 is one of our earliest investors and is a trusted member of the Loki community who has advised and supported us since Loki’s inception (in fact, before Loki was even called Loki), and currently runs several Service Nodes.
The Loki Foundation maintains full rights to audit the bridge at any time, and works with the service provider to ensure that the correct amount of B-Loki and Loki is being held on the bridge at any given time. The service provider may never use the Loki held on the bridge for any other purpose than usage on the bridge (except for fees), and must adhere to strict security policies set by the Loki team.
Great. How long does it take to swap Loki to B-Loki? And B-Loki to Loki?
On average, swapping Loki to B-Loki should take about an hour. This is how long it takes for 12 chain confirmations on the Loki blockchain, plus a processing period to confirm everything on the backend. This time may reduce after checkpointing is enforced on the Loki mainnet and has proven itself to be reliable.
Swapping B-Loki to Loki should be much faster and take about half an hour. Since Binance Chain has a low blocktime, it reaches finality very quickly. However, there will be some lag due to processing time on the backend of the bridge.
It’s worth noting that not all processing happens automatically: the bridge operator can choose to investigate swaps as they happen to ensure that incoming and outgoing balances match. This may add additional processing time beyond the normal period — as much as 24 to 72 hours.
Is Loki Bridge decentralised?
No, however once you’ve crossed the bridge and have B-Loki or Loki, you have full control over your funds again with your own private keys. The only centralised part of the process is the swapping mechanism.
Hang on. Is this some grand plan for Loki to switch to Binance Chain?
Not at all. We’ve built Loki Bridge to allow users to access Loki from additional places (including Binance Chain), however Loki will continue running on it’s own mainnet — it is critical to keep the Service Node network functioning.
Originally published at https://loki.network on August 6, 2019.