Thread by @NicholasLobue

As we approach the upcoming release of the State Connector on #SongbirdNetwork, I thought it might be useful to write a quick thread to simplify the #LayerCake white paper and provide context as to why it is important.
#SGB #FLR #ConnectEverything

flare.xyz/whitepapers/

First off, #LayerCake is the name given to the cross-L1 bridge that will reside on #Flare. This gives a user the ability to bridge an asset on to the Flare network.

For example, let's say Hugo would like to utilize some of his #XRP on Flare. Hugo could deposit his XRP somewhere and be minted a representation of it on Flare. The representation is currently know as an F-Asset.

Once on Flare, the minted asset could be utilized within the Flare ecosystem. This means Decentralized Applications built on Flare have the opportunity to integrate with any bridged asset.

You: Ok, but how does this bridge work?

Me: LayerCake leverages something called the State Connector to make this all work.

You: State Connector? Huh?

Me: The State Connector is a mechanism which verifies transactions have been made on external blockchains.

You: But what does that have to do with LayerCake?

Me: Good question.

In order for LayerCake to securely bridge assets, collateral needs to be locked on both the destination and origin chains. The State Connector is able to verify that the appropriate amount of collateral has been deposited on the external chain.

Collateral needs to be locked for the time it takes an asset to cross the bridge, plus a short cool-down period. This cool down period is a safe-guard in the case the L1 chain undergoes a block re-org.

Previously, to participate in the minting process, collateral would need to be locked up for the duration the F-Asset lives on the network. In this case, substantial amounts of collateral would need to be locked up, limiting participation to large players.

The timed release and reduced collateral requirement, give rise to further decentralization of the bridge. It would allow any user with sufficient collateral to be able to mint assets, including their own.

This also opens the door for LayerCake to bridge an asset from ANY connected L1 chain back to ANY other connected L1 chain with Flare as an intermediary. This is how Flare will #ConnectEverything.

@FlareNetworks @CommunityFlare @AureusOx @ftso_eu @ftso_eu

To clarify further, thanks @HugoPhilion:

https://twitter.com/HugoPhilion/status/1507397087469707271?s=20&t=w9fsTeRGSS9CqEciWcprcQ