On 21st September, hop13, a member of the cryptocurrency subreddit platform r/BTC posted about creating a bridge between Bitcoin Cash [BCH] and Ethereum Classic [ETC] via a cross-chain system. The post was titled ‘Working Cross-Chain Bridge: Pay in BCH – Receive Ethereum Classic Dividend token in return’. The member wrote:
“I’ve been experimenting with Bitcoin and connecting it to Ethereum Classic (ETC), and have created a cross chain system in which you can donate with Bitcoin and receive an ERC-20 token that pays dividends based on other transactions in the network.”
In the blockchain space, a cross-chain transaction is the one that provides the facility for two different cryptocurrencies to be transacted in a single system. For instance, one can send Bitcoin Cash and receive another cryptocurrency in return. The Reddit user, hp13, who initiated the BCH-ETC cross-chain experiment also instructed the community to possess an ETC wallet known as Saturn Wallet. Disabling Metamask on the wallet was also part of the instruction.
Secondly, hop13 encouraged the community to donate an amount in Bitcoin Cash to test the performance of the system built by the techie. On sending BCH, the donor was said to receive a token in return after the recipient confirms the donation. The total time set for the whole task to be done was stated to be around 15 minutes.
The user also explained the underlying mechanism of the cross-chain system. When the ‘money button’ of the Saturn Wallet is used, the TxID and one’s in-browser ETC address is sent to the server of the recipient [in this case, hop13]. Next, the server verifies the transaction on the BCH blockchain and sends the corresponding amount of token on reading the donation as valid. The user also stated:
“This token, P3C, is completely redeemable for real ETC on our website, or you can choose to hold it and earn dividends. Every time P3C is bought, sold, or transferred on the network 10% goes to all token holders.”
On top of the cross-chain system, the user also suggested building a reward point system to increase the demand for the BCH payments among the consumers. This is similar to the reward scheme used by credit cards to achieve a rise in consumer demand.