Blockchain Bridges | Enabling Cross-Chain Interoperability

Easy engagement and interoperability are essential for decentralized blockchain app development. As the blockchain community grows, constraints in inter-network communication and data sharing have emerged. It has cast doubt on the concept of decentralization. In reality, multiple stakeholders should govern blockchain networks rather than a centralized organization. Because programs designed for one network only work on that network, this has resulted in a lower adoption rate.

Over time, many breakthroughs such as cross-chain technology (Blockchain bridges) have emerged to connect networks, allowing for the seamless flow/exchange of data from one blockchain to another while also raising adoption rates.

Interoperability on the Blockchain: What You Need to Know

Interoperability refers to a blockchain’s ability to communicate with other blockchains that have the same underlying architecture to promote information sharing. It’s the ability to look at and interact with data held on another blockchain. When information transmits to another blockchain, interoperability allows a user on the other side to access it and react efficiently.

Understanding Blockchain Bridges

A blockchain bridge (also known as a cross-chain bridge) is a platform that connects two blockchains, similar to a real bridge. It aids in the movement of data and digital assets between two blockchain networks, making communication easier. Both chains may have their protocols, regulations, and governance systems, but the bridge allows them to work together safely (i.e., communicate and share data). Smart contract calls, decentralized identities, off-chain information like stock market price feeds, and other types of data can all be exchanged through blockchain bridges.

Workings of Blockchain Bridge

Consider the following scenario with two blockchain networks: Chain A and Chain B.

The bridge can be configured to lock the token on Chain A and mint a new token on Chain B when moving tokens from Chain A to Chain B. The total amount of tokens in circulation in this case is distributed between the two chains while remaining constant. Chain A would still have fifteen tokens (with five tokens locked) after transferring five tokens to Chain B, but Chain B would have five more.

Unique Advantages of Blockchain Bridges

Transaction between chains

Little network activity

An improved development experience

Decreasing monopolization

Types of Blockchain Bridges

Trusted Bridges

Untrusted Bridges

Blockchain Bridge Examples

Binance Bridge

Portal by Wormhole

Why do We Need Blockchain Bridges?Bridges enable:

The cross-chain transfer of assets and information

Dapps to access the strengths of various blockchains. It thus enhances their capabilities (as protocols now have more design space for innovation).

Users to access new platforms and leverage the benefits of different chains.

Developers from different blockchain ecosystems collaborate and build new platforms for the users.

Conclusion

In this article, we investigated the topic of blockchain interoperability, reviewed the benefits of blockchain bridges, examined how blockchains communicate and share data, and discussed some of the challenges for cross-chain applications.

Working on Blockchain, Nft, Metaverse, and new technologies.