Centralization of Cross-Chain Protocols

One of the reasons why cross-chain bridges are unsafe is that most of them are controlled by entities that one has to trust. 

For example, if a protocol is the issuer of an Ethereum derivative, they are trusted to keep the price of that derivative stable. In other words, users trust them not to mint more of those derivatives to inflate the market. This means that the derivatives are only as good as the integrity of the issuer. 

Of course, this raises important fundamental questions. If users still have to trust the protocol not to play silly games, what's the point of decentralization? The entire idea behind Web 3.0 is to create a decentralized and permissionless economy where people don't have to trust others. 

However, these cross-chain protocols are doing exactly that. They are forcing people to trust a central authority. What makes this even more disturbing is that this central authority has all the incentives to play clever games with users. 

Since these protocols are technically unregulated banks, they can use several strategies to hoodwink their users. When a user deposits a token in the protocol, they are treating the protocol like a bank. There is no transparency, and the entity can do whatever it wants with the token. 

Theoretically, this means the entity can operate a fractional reserve where it only keeps a part of the tokens deposited on hand. The entity can then use another part of this token for business. It could be used to fund other projects, or it could even be siphoned away for personal expenses. Anything could happen to it, and no one would know until the entire operation came crashing down. 

Secondly, the entity could have as many tokens as they want on the derivatives blockchain. This means that everyone holding the issued derivatives would lose a little part of their money automatically. 

These are huge risks that users don't need to be exposed to — but yet are. Thankfully, there are protocols like InterSwap that are the exact opposite of every other trusted cross-chain protocol. InterSwap uses a layer zero protocol that completely removes the need for trust. The layer-zero program ensures that users don't have to deal with intermediaries who have control over their assets.

Now, many argue that intermediaries and centralized authorities are important for seamless transfers. They believe that a permissionless protocol would simply be too complex for people to use. But that's false. InterSwap manages to deliver seamless transfers and complete transparency in one app. Interswap is the first of its kind in the industry and is peerless when it comes to delivering seamless transactions. 

In InterSwap, users have an entity that they can trust (without having to trust), and a solution that is extremely easy to use. There's never been a better time to go with InterSwap when it comes to transferring tokens cross-chain. 

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