- Cross-Chain Bridges – Also called Blockchain Bridges
- Cross-Chain Bridges provide interoperability within different blockchains
It becomes difficult to conduct transactions between two blockchains, as they are secluded in nature. So, here comes cross-chain bridges which enable users to conduct transactions between independent blockchains.
Cross-Chain Bridges- Also known as Blockchain Bridges
Cross-chain Bridges are sometimes also referred to as Blockchain Bridges. They allow the cryptocurrencies or other digital assets to move from one blockchain to another. They use a smart contract to lock or burn tokens on the source chain and another smart contract to unlock or mint tokens on the destination chain.
Cross-chain bridges act as a gap filler between blockchain networks across various digital assets like NFTs and cryptocurrencies, including Solana and Ethereum.
Cross-Chain Bridges Enable Interoperability
Cross-Chain Bridges allows interoperability across various blockchains. They make the users’ work easy and convenient. It enables exploring unique decentralized apps, trading with lower transaction fees, and increasing investor’s exposure to different assets that otherwise would not have been possible.
They are vulnerable to hacks and malicious softwares.Yet, cross-chain bridges have defense mechanisms at their disposal. If they get hacked, they use blockchain technology’s transparency to look into the movement of funds and, in most cases, stop attackers from withdrawing their illicit earnings.
Cross-chain bridges act really as a bridge so that the blockchain networks can easily communicate and transactions can take place in an easier way. Cross-chain bridges are the gateway to the world of deFi and a path to learning blockchain technology. It provides oneself to switch over different blockchain technology without the use of permission from any centralized authority. Hence, we can say that the Cross-chain bridges are based on Web3 theory.
Examples of Cross-Chain Bridges
Stargate
Stargate is a fully composable cross-chain bridge protocol built on LayerZero that enables native tokens transfers between different blockchain networks. It does not depend on wrapped tokens or intermediate tokens. It provides seamless and single transaction processes across blockchain networks.
Arbitrum
Arbitrum is a cross-chain bridge based on the Ethereum blockchain. It uses smart contracts to execute between the blockchain networks. It was launched with the purpose of addressing the high cost of transactions and the need to boost transaction speeds. There are two types of chains operating parallel in Arbitrum namely, Arbitrum One and Arbitrum Nova.
Multichain
Multichain is a cross-chain bridge based on Web3 theory. It allows users to switch over different blockchains. It is cost-efficient as it reduces fees to transact between two different blockchains. Also, it is easier to move between chains with the help of a Multichain network.
Conclusion
The blockchain ecosystem is increasingly becoming multi-chain which has created a unique problem for the ecosystem and Cross-Chain Bridges address this problem. However, cross-chain bridges are vulnerable to hacking and other malicious activities. Cross-chain bridges need the support of strong blockchain networks to prevent fraudulent activities. Cross-chain bridges are needed for the future as well, as they hold the potential to bridge the gap between an increasing number of independent blockchain networks.
