Bridge tokens between Ethereum, Arbitrum & Digitex
Bridging tokens between Ethereum, Arbitrum and Digitex is fast and easy. The token bridge consists of an intuitive UI built into the Digitex casino wallet and account area, and a fully decentralized and non-custodial set of bridge smart contracts developed by the Arbitrum team.
Players can bet using ETH, USDC, USDT, ARB and DGTX tokens. All bet transactions on the Digitex casino are executed using the Digitex blockchain. This means players must bridge their tokens to the Digitex blockchain from Ethereum or Arbitrum.
Let's take the USDC token bridge between the Arbitrum and Digitex blockchains as an example.
The user deposits 1,000 Arbitrum USDC tokens into the bridge smart contract on the Arbitrum network. This locks up those tokens and sends a message to its counterparty bridge smart contract on the Digitex blockchain which mints 1,000 Digitex USDC tokens and sends them to the user's wallet address.
Now the user has a balance of 1,000 Digitex USDC tokens which are backed up 1:1 by 1,000 Arbitrum USDC tokens which are locked in a smart contract on the Arbitrum chain. The user can now bet on Digitex casino games using his Digitex USDC tokens, enjoying instant bet transactions and zero gas fees.
After a while, the user wants to convert his 1,000 Digitex USDC tokens back to Arbitrum USDC tokens. So he deposits 1,000 Digitex USDC into the bridge smart contract on the Digitex network. This smart contract then burns these tokens and sends a message to its counterparty bridge smart contract on the Arbitrum network which then releases his 1,000 Arbitrum USDC tokens and sends them to his wallet address.
As you can see, token deposits to the Digitex network are done via a locking and minting mechanism that ensures the newly minted tokens are fully backed 1:1 by tokens on Arbitrum. Token withdrawals from the Digitex network are done via a burning and unlocking mechanism that ensures the newly minted tokens are destroyed before the original collateral tokens on Arbitrum are unlocked and released back to the user.
Bridging tokens between Arbitrum and Digitex is instant and costs a few cents at most. The locking, minting, unlocking and burning transactions are done instantly and the user receives his bridged tokens immediately, whether depositing tokens onto Digitex or withdrawing them onto Arbitrum.
To bridge tokens from Ethereum to Digitex you must first bridge your tokens to Arbitrum and then bridge them from there to Digitex. Bridging tokens from Ethereum to Digitex is therefore a 2 step process of Ethereum to Arbitrum, Arbitrum to Digitex. But conceptually it is exactly the same - tokens are locked into one smart contract and minted on another.
The bridge transaction from Ethereum to Arbitrum takes about 10 minutes and costs several dollars, depending on how high Ethereum gas prices are at the time. But the bridge transaction from Arbitrum to Digitex is instant and costs only a few cents.
The bridge withdraw transaction from Digitex to Arbitrum is also instant and costs a fraction of a cent. But the bridge transaction from Arbitrum to Ethereum takes a long time and requires 2 Ethereum transactions that each cost several dollars. So you can bridge tokens back to Ethereum but practically speaking its best to keep them on Arbitrum.