The Three Blockchain Cryptocurrency: Leo
The Traders Advantage:
The Hive token with wrapped versions on two other blockchains.
Thus allowing trading across three blockchains: Leo, WLEO & BLEO.
This Hive TokenLeo is traded on three blockchains: Hive, Ethereum and Binance Smart Chain blockchain.
Cross Blockchain Trading Explained
A blockchain token can only be traded on it’s blockchain, as a native token. However, it can be traded on another blockchain, if it is represented by a token native to the desired blockchain.
For example: Leo token, which is native to the Hive Blockchain and which can be traded there in it’s native form. But this native form Leo, cannot be traded on Ethereum. However Leo can be traded on Ethereum, when its value is represented by an ERC token, which is a special type of Ethereum block chain native token, which doesn’t represent the primary native token of Ethereum Ether, instead it represents a non-native tokens like Leo. And in this example the ERC token is called WLEO.
Native Blockchain Tokens
Native Blockchain tokens are like Leo on Hive, Ether on Ethereum and Bitcoin on the Bitcoin Blockchain.
Non-native Blockchain Tokens
Leo token is a non-native token on Ethereum, Bitcoin is a non-native token on Ethereum and Ether is a non-native token on Hive.
Cross-Blockchain Trading
Crosss blockchain trading refers to the trading of blockchain tokens across blockchains, such as trading Leo on Ethereum applications, and trading Ether on Binance Smart Chain applications. IT is cross blockchain because tokens native to one blockchain are traded on another blockchain.
Wrapping, Hive Tokens, ERC Tokens, and BEP Tokens
Wrapping is the name given to the process that makes Cross Blockchain trading possible. It doesn’t actually involve wrapping, like we do with a gift or present, but the process has become known as wrapping. In wrapping an investor creates or pays for the creation of a specialized native blockchain token, which represents the value of a non-native token, so that the non-native tokens value can be traded on another blockchain token.
Example:
The creator of Leofinance wanted to trade Leo on an Ethereum blockchain application Uniswap. Leo is a Hive blockchain token, so it cannot be traded on the Ethereum blockchain. However it can be represented on the Ethereum blockchain by a special Ethereum token called an ERC token. So in order to trade Leo on Ethereum, a ERC token called WLEO was created.
Custodian
When you want to trade a non-native token like Leo on the Ethereum blockchain, you must create a special token, native to the Ethereum blockchain called an ERC token, to represent the value of a Leo token on Ethereum. Then you have to wrap Leo tokens as this ERC token, which in this case was called WLEO. So an investor, sends his Leo tokens to a custodian, someone who takes the Leo and sends the investor back the WLEO in return. The custodian then holds the Leo until the investor asks for it back, by sending the custodian the WLEO tokens.
A famous token Bitcoin is also wrapped so it’s value can be traded on Ethereum. A famous custodian BitcoinGo, creates the wrapped Bitcoin token and investors send their Bitcoin to BitCoinGo, and they received wrapped Bitcoin in return, while BitCoinGo holds their Bitcoin. When investors want their Bitcoin back, they send the wrapped Bitcoin back to the custodian BitCoinGo, and BitCoinGo sends the Bitcoin back to their wallets.
Hive Blockchain Token Leo, Ethereum Token WLEO and Binance Smart Chain token BLEO
This brings us to the star of our article, the Hive token Leo. The Hive token Leo has been wrapped as a special Ethereum token, an ERC token called WLEO, so it can be traded on Ethereum blockchain application Uniswap. And it has been wrapped as Binance Smart Chain token, an BEP token, called BLEO, so it could be traded on Binance Smart Chain application Cubfinance. It was from it’s genesis a Hive Token, which could be traded on Hive-Engine or LeoDex. It is therefore a three blockchain trading token, traded on three blockchains, Hive, Ethereum and Binance.
The Doorway to Hive Community for Ethereum Content producers and Binance Content Producers
Because Leo is traded on Ethereum’s blockchain as WLEO, and because Leo is traded on Binance Smart Chain’s blockchain as BLEO, investors who have never heard of the Hive Blockchain or the Hive Social Media application can enter the Hive ecosystem from either Ethereum or Binance Smart Chain and trade the non-native tokens value from those blockchains on Hive, as Leo or Hive tokens, by utilizing the ERC token on Ethereum or the BEP token on Binance Smart Chain, to trade their tokens into Leo and subsequently Hive.
In this way content producers from those two blockchains can come to Hive to post content, or purchase things like NFTs or Splinterlands cards, or to purchase Hive, power it up and generate author and curation rewards from their own content or from upvoting the content of others.
Future Cross Block chain trading project on Hive blockchain
The creator of Leo token has one more project, not yet finished, which will potentially increase the number of investors and content producers who migrate into Hive from the Ethereum Network and Binance Smart Chain Network. This project involves a automated single step method of trading Ethereum token WLEO, or Binance Smart Chain token BLEO for LEO. This will allow investors and content producers from the Ethereum Network and the Binance Smart Chain Network to transfer the value of their Ether tokens or their Binance tokens into the Hive ecosystem as Leo in one simple step. This project will eliminate the inherent complexity of cross-blockchain trading, by hiding it’s complexity under a simple graphic user interface.
WLEO to Leo in one step, or BLEO to Leo in one step. A one step entryway into the Hive ecosystem.
This is my explanation of the Three Blockchain, Hive Blockchain Cryptocurrency: Leo, and it’s significance to the Hive ecosystem.
This Hive TokenLeo is traded on three blockchains: Hive, Ethereum and Binance Smart Chain blockchain. This Hive token is now a doorway from those two ecosystems to a third ecosystem Hive.
I think it will increase utility of the Hive token and bring more investment capitol into Hive. I thnk the future of Hive and Leo is bright.
✍️ by @shortsegments
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance, where finance meets technology.
Read more of shortsegments articles here: https://leofinance.io/@shortsegments
https://leofinance.io/@shortsegments/an-ode-to-ethereum-defi-poetry
https://leofinance.io/@shortsegments/using-cdp-loans-on-a-defi-lending-platform-to-double-your-eth
https://leofinance.io/@shortsegments/a-bitcoin-christmas-carol
https://leofinance.io/@shortsegments/leofinance-the-michael-jordan-of-social-media
https://leofinance.io/@shortsegments/leofinance-the-michael-jordan-of-social-media
Leofinance, where you can blog or share financial topic content to earn cryptocurrency, as part of a passionate social media community.
Learn more about Leofinance with my Seven Minute Quick overview and QuickStart Earning Guide. Then you can Join for FREE! Signup takes 20 Seconds!
Click Here
.
Posted Using LeoFinance Beta
Your post has been voted as a part of Encouragement program. Keep up the good work!
Use Ecency daily to boost your growth on platform!
Support Ecency
Vote for Proposal
Delegate HP and earn more
Thank you for the support. I appreciate it.
Posted Using LeoFinance Beta
I just want to note that it is possible to change ETH tokens into BSC tokens though the Binance Bridge, the new project is built to reduce the complexity and the fees. As for how much you will save, I do not know but it should be as easy as 1 click.
Posted Using LeoFinance Beta
I agree the new bridge will reduce complexity and chance of error. This theme of making it easy for people to transact is a consistent Lrofunsnce theme. As for the Binance bridge... I am familiar with it, I wrote a post on it in the past. Perhaps I will write a post comparing these two.
Posted Using LeoFinance Beta
Yes a post comparing the two would be good but I don't know if it should wait till after the Bridge goes live or not.
Posted Using LeoFinance Beta
I think LEO has a bright future.
Posted Using LeoFinance Beta
Hi @rentmoney!
It’s been a long time?
How have you been?
Posted Using LeoFinance Beta
It has been, I took break from online activity.
I been good, I hope all is well with you.
This is a very good peak under the hood of decentralized finance and cross blockchains trading.
Good job. Many newbies will benefit from this post.
Posted Using LeoFinance Beta
Thanks, I try to provide a good peek :)
Posted Using LeoFinance Beta
You did a very good job of breaking this down for new people. I really didn’t understand the need for all the steps called for to do simple things. But now that I understand blockchains specificity, and the wrapping process, things are clearer to me now. It still will take a while for all this information to sink in to my brain. I wish Elon Musk neuralinks were ready, so I could just get a download and understand. Until then I will just keep reading your stuff. Thanks
Posted Using LeoFinance Beta
Thank you, I am glad it was helpful. This process is a journey of learning for all of us.
Posted Using LeoFinance Beta
Good guide for newbies.
Thanks for the solid.
Posted Using LeoFinance Beta
Your welcome.
Posted Using LeoFinance Beta
!SEOcheck
Posted Using LeoFinance Beta
Title is of good length- Perfect
Permlink is of good length-Perfect
Both headers found - Perfect
Image available-Perfect
Title keywords are used in header-Perfect
Internal link found-Perfect
External link found-Perfect
This makes me very happy b
Posted Using LeoFinance Beta
Brilliant explanation!
However, I thought to wrap a token you need to burn it on it's native blockchain and a new one is created on the destination blockchain. Is that another way of doing it or is the custodian who does ti?
As I understand it, you swap your token for the wrapped token, but when you return the wrapped token it is burned in systems allowing minting, but in other systems without reminting it varies.
In the first run of WLEO, the reminting function was exploited, so newer wrapped tokens since then deleted this reminting function, due it’s possible exploit.
Posted Using LeoFinance Beta