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The Occurrence Of A Mainnet Swap And Native Blockchain Networks

the occurrence of a mainnet swap and native blockchain networks

The movement of a cryptocurrency from a third-party blockchain network, like Ethereum, to its own blockchain network, is known as a mainnet swap. While a cryptocurrency project is in the testnet phase, a third-party blockchain network is employed. But, after the testnet phase is completed, users will get native crypto in return for their third-party tokens. As a result, it is also known as token migration or token shift. The mainnet swap is essentially the exchange of third-party tokens for the platform’s native coin.

The Nature of a Mainnet swap

A mainnet swap often occurs when a cryptocurrency project migrates its tokens from one blockchain to another or from a third-party blockchain to its home chain. Therefore, the mainnet swap is not mainly related to new blockchains. If a project decides to switch from one protocol to another, it may make an announcement about it. One example would be the transfer of tokens from the Bitcoin protocol to the Ethereum network.

The intricacies of how a mainnet swap is executed differ from project to project. The majority of projects provide users with a timeframe for token transfer. If you do not do so, you will lose access to your tokens because they are generally burnt after the deadline.

the occurrence of a mainnet swap and native blockchain networks

Binance Coin is an Example of a Mainnet Swap

The mainnet swap typically follows a 1:1 ratio. The remaining tokens are burnt once it has been finished over the whole blockchain. Users can exchange their tokens manually or leave them on the platform, depending on the primary aspects of execution. Binance, for example, permitted users to leave previously issued tokens on their accounts so that the platform could automatically switch them out for native tokens.

BNB (Binance Coin) is one example of a mainnet swap. Binance Chain was utilizing the Ethereum-based ERC-20 BNB coin during its testnet phase. Nevertheless, with the introduction of the mainnet, ERC-20 BNB token holders were urged to shift to the BEP2 BNB token (the native coin of Binance). This swap happened at a 1:1 ratio, which means that 1 BEP2 BNB coin = 1 ERC-20 BNB.

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