Anyone who has doubted the benefits that decentralized finance technology projects have brought to the cryptocurrency markets needs to pay closer attention to new developments such as the Inter Blockchain Communications protocol recently launched by Cosmos. Instead of simply building another layer to improve the efficiency of the Ethereum blockchain network, Cosmos has set out to build a bridge between ETH and Bitcoin.

As can be expected, the native Cosmos token, which trade under the ATOM symbol, have posted significant gains in recent days. From July 20 to August 22, ATOM appreciated by nearly 200%, and this was at the same time the London blockchain upgrade rolled out for the Ethereum network. Those who thought that Ethereum issues would have been resolved after the London upgrade were unpleasantly surprised. Transaction fees are still high, and the waiting times for transactions to clear are still too long for practical purposes. In other words, the DeFi layer two projects that are running on top of the Ethereum blockchain are still relevant and necessary in order to complete ERC20 token transactions.

The Cosmos ETH and BTC bridge enables the fast and efficient transfer of digital assets between networks. The ATOM token is used to complete these speedy transactions, which would be useful for merchants and other entities that would like to start accepting Ethereum and Bitcoin to settle payments.

One of the advantages of using the ATOM token is that it is extremely easy to transfer tokens to and from one network to another. ATOM token transfers are also cheap, and they are cheap because they don’t have to pass through the Ethereum blockchain. So, what this means is that if users and platforms are interested in utilizing the Cosmos ETH and BTC bridge, they can start a bridge without having to convert the assets into ATOM tokens and then transfer them to other blockchains. This means that if users and networks want to utilize the new Cosmos network, they will not have to spend a huge amount of time and money just to set up the bridge. The learning curve is negligible.