Biconomy, an Indian blockchain startup, reported the launch of its Hyphen mainnet today. The Hyphen can facilitate instant transfers with a low-cost gas fees throughout various blockchains. Since its launch, users have been able to instantly transfer USDC between ETH and Polygon, facilitating those transfers in a mere couple of seconds, versus the current 30 minutes, or even an hour for completion. Hyphen was able to facilitate faster transfers by preserving and rebalancing token liquidity on both sides of the chain.

In recent events, Layer2s have witnessed a huge increase in requests to move hundreds of dApps to Polygon, to avail of more low-cost gas fees and quicker transactions. However, the user experience when transferring in and out of Polygon is time-consuming and complex. These problems diminish the network effects and complicate the user experience, therefore, Hyphen was developed to help solve the issue. Hyphen allows developers to offer on-the-spot value transfers ​​between Ethereum VM networks, various L2 solutions and sidechains. As well as allowing faster onboarding from Layer1 to Layer2, Hyphen also addresses the scaling and congestion issues on Ethereum.

Biconomy’s Past and Future developments

Biconomy was first established by Sachin Tomar, Aniket Jindal and Ahmed Al-Balagh in 2019. The startup firm offers software to empower developers to build applications. Co-founder Jindal stated that in the last six to eight months, there has been a substantial shift in the outlook of Indian blockchain projects, after the success of the Indian-based blockchain startup Polygon. He also added that there has been a 180-degree shift in international investors’ reactions and perspectives – it was actually hard to raise funds way back in 2019.

It was previously reported that Biconomy was able to collect $9 million in private funding, led by Mechanism Capital and DACM, with contributions from Coinbase Ventures, True Ventures, NFX, Coinfund and Bain Capital, to name a few. Aniket Jindal stated that “the current crypto environment is tricky. Every contact with a decentralized application is a complex blockchain transaction that most people are unaware of. However, Biconomy believes that it can simplify these complexities and enable the next billion consumers to onboard the crypto ecosystem.”

In the latter part of the year, the blockchain startup is set to launch its native token, Bico. This will be a community governance token, as well as an incentive for all stakeholders. With its first launch, Bico will work on five specific blockchains. Biconomy is also planning to decentralize its infrastructure with a new multichain relayer protocol called Mexa. In conclusion, with the crypto market showing signs of life again, demands for cross-chain interoperability are likely to increase, particularly as DeFi continues to widen its reach across the crypto world.