Founded: 2022
Stargate offers a so-called bridge with guaranteed finalization. A bridge is a system that allows assets to be transferred more or less decentrally from one blockchain to another. A blockchain consists of a network of many individual servers, ranging in size from small to large, all storing the same data packets (blocks = blockchain). Each data block contains information specific to that moment, such as transactions or ownership details. While the blockchain can retrieve all its own historical data, it cannot access external data, whether from a central storage server or another blockchain. This unfortunately leads to the problem that some blockchains are about as compatible with others as Android is with Apple.
The fundamental challenges of a bridge are, firstly, the security of assets during transfer, and secondly, the risk of loss due to fluctuations or total failures of the bridge or the asset. From a security perspective, decentralized bridges are therefore preferable, as they at least remove the failure risk of a central company from the process. However, this brings with it a problem of decentralized systems that Stargate has successfully solved technically: the delivery guarantee. For individual users with individual transactions, manually verifying the transaction on the recipient's second blockchain is not a problem, merely cumbersome. However, when blockchain-based financial systems process transactions, they require confirmation of receipt from the recipient to successfully complete the transaction, just like a traditional bank. Having to search for this confirmation of receipt on different technology systems (other blockchains) each time often proves problematic. Furthermore, it is extremely difficult for all users if a transaction is not delivered and has to be reversed. Decentralized financial systems, in particular, face liability issues with their customers, as they may have even used a bridge without the customer's knowledge.
Developed by LayerZero Labs, Stargate utilizes LayerZero's secure and decentralized communication platform for its asset transfers. It relies exclusively on native assets for these transfers, avoiding certificates of assets that could lead to liquidity issues, thus ensuring the crucial completion of transactions. Within the ecosystem, its own token, STG, serves both as an incentive and a voting system. This allows investors who do not sell their tokens to participate in platform decisions and contribute their own ideas. Furthermore, fees can be earned on transactions by providing liquidity.
