Terabethia, an asset mirror Tech Company, and cross-chain contract communication were created by Psychedelic, a Web 3.0 development firm that creates solutions exclusive for the Internet Computer. Users will be able to replicate and utilize any of the available Ethereum tokens, Nonfungible and fungible, on the Internet Computer Blockchain and vice versa, thereby converting the Internet Computer into a layer-two scaling solution for Ethereum, starting with the Internet Computer and Ethereum.
The protocol aims to address issues like congestion in the Ethereum network and excessive gas prices. Meanwhile, the Internet Computer employs a “reverse gas paradigm,” in which developers provide the finances required to operate the programs or contracts utilizing their gas, referred to as “cycles.”
Dominic Williams, the founder of Internet Computer developer named Dfinity, says Internet Computer is quite effective when it comes to storing data compared to other available chains. Storing a gigabit of data on Ethereum costs $199 million per year, which is quite high compared to the storage on the Internet Computer costing $5.52 per year. This enables decentralized apps to function at web speeds, having no limit capacity in terms of data and cost. NFTs are designed to store on-chain due to their limitless capacity. Because of the high cost of data and the impossibility of many blockchains to scale, NFT metadata is frequently kept “off-chain.”
The total value locked on Ethereum layer-two solutions hit $5.64 billion last month. Crypto fans are flocking to these networks in order to avoid rising gas costs.
The team at Psychedelic thinks that transferring assets between the ETH and Internet Computer will increase liquidity and open up completely new use cases that can fit with ecosystems. NFTs, for example, may now be minted on any network, allowing users to avoid the high minting fees associated with Ethereum. Ethereum-based assets may also be utilized in NFT games, sold on decentralized markets, and even used as collateral on lending services.
Internet Computer has the ability to enhance the usability, functionality, and value of Ethereum assets and applications and might even become worth L2 for Ethereum in the long run.