The full-chain decentralized exchange Sifchain (Sifchain) announced that it has deployed the Cosmos-Ethereum connection bridge Peggy on its testnet Monkey Bars, and will launch the Beta version of the mainnet including this function on January 25th ( BetaNet) and the public sale of the startup token Rowan.

Sifchain is a cryptocurrency transaction protocol built on Cosmos. It will perform cross-chain integration with 20-25 mainstream blockchains (such as Ethereum and Stellar), thereby simplifying the development process of the Cosmos community and enabling subsequent cross-chain integration to Extremely low development costs are achieved.

The goal of Sifchain is to make cross-chain integration between different chains a standard configuration like wallets or block browsers, so that people can trade all cryptocurrencies on the chain, and coordinate deployment through a decentralized autonomous organization (DAO) Funding in all cryptocurrencies.

Sifchain’s connection bridge, Peggy, is built on top of the Cosmos master fork version and complementary development by the Swish Labs team. Like the Althea version of Peggy in the Cosmos ecosystem, the Sifchain version of Peggy will also be able to create anchor tokens for ETH and other Ethereum ERC-20 tokens on the blockchain of the Cosmos network. Specifically, an Ethereum user sends tokens from an Ethereum wallet to a Peggy smart contract running on Ethereum. The validators who maintain the Peggy smart contract will lock the Ethereum tokens and mint the corresponding anchor tokens and send them to the user's wallet address in the Cosmos network.

However, the two differ in the security model of the token economy. The Althea version of Peggy uses Proof of Authority (PoA). In it, the user accepts the reputation of some specific pre-appointed Peggy Connection Bridge validators. If these validators declare a cross-chain transaction valid, it is validated.

On the contrary, the Sifchain version of Peggy adopts the pledge threshold mode, that is, the Peggy verifier pledges the collateral to protect the connection bridge, and accepts the rules of the Tendermint consensus on both sides of the connection bridge—the Cosmos side and the Ethereum side. Forfeiture of collateral penalty (Slashing). This solves the economic security of the Althea version of Peggy. At the same time, verifiers of the Sifchain version of Peggy can earn a certain service fee.

It can be said that Althea sacrificed the minimization of trust and chose the simplicity of the design, while Sifchain pursued the maximum trustless.

Sifchain's deployment of Peggy is of great significance to the Cosmos network. Through Peggy and the Interchain Communication Protocol (IBC), Ethereum users can use ETH and ERC20 tokens on Cosmos platforms such as Kava, Akash, Terra, e-Money, IRIS, Secret Network, and Cosmos Hub. Cosmos Network users will also be able to use their tokens on Ethereum, taking full advantage of Ethereum's DAPP ecosystem.

The deployment of the Peggy connection bridge is also an important step for Sifchain to realize the full chain liquidity of all blockchains. As the first blockchain project focusing on full-chain coverage, Sifchain announced in December 2020 that it has received $3.5 million in seed round financing from NGC Ventures, Alamenda Research and other institutions, and will start public offering of tokens on January 11, 2021 The investor registration and KYC process, and the token public offering was officially launched on January 25. At the same time as the public sale of tokens, on January 25, Sifchain will also launch the Beta version of the main network with the Peggy connection bridge, allowing real-time transactions of cryptocurrencies.