On Wednesday, Psychedelic, a Web 3.0 development studio building solutions for the Internet Computer, launched Terabethia, a cross-chain contract communication and asset mirroring protocol. Beginning with the Internet Computer and Ethereum, users will have the ability to mirror and use any Ethereum tokens, fungible and nonfungible, on the Internet Computer blockchain and vice versa, effectively turning the Internet Computer into a layer-two scaling solution for Ethereum.
The protocol attempts to tackle the problem of Ethereum network congestion and high gas fees. The Internet Computer, meanwhile, uses a "reverse gas model" where developers supply the funds needed to run the applications or contracts that use their gas, known as "cycles."