Native Coins and Their Use in Cross-chain Swaps
The struggle to connect blockchains smoothly and efficiently becomes increasingly acute as the industry grows and more users flow to the market. Therefore, various mechanisms and solutions, including cross-chain swaps, attract the most extensive attention from the crypto community.
Such swaps grant users more flexibility in managing and utilizing their digital assets across different chains. There are several methods for cross-chain swaps, including using cross-chain bridges and atomic swaps. The former is a prevalent option, highly reliant on native coins, which are crypto assets unique to each chain.
In cross-chain swaps, native coins have two crucial functions. First, they provide sufficient liquidity for a seamless exchange between networks since, as each chain's original asset, they typically have the highest liquidity available. The second function is more technical: native coins serve as the means of paying fees within networks, which is indispensable for executing transactions.
Discover more about native coins, their use in cross-chain swaps, and associated issues by reading the full post on the Kinetex blog.
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