Are Bridges Solving the Interoperability Problem?

2021-10-12 16:10

The blockchain landscape is as vast as it is diverse. Filled with a rapidly growing number of tools, platforms, and protocols, each designed to boost the utility of cryptocurrencies and provide value to users.

But in this complexity, a major obstacle has emerged. Blockchains simply can’t interact with one another. Ethereum, Binance Smart Chain, Solana, Terra, and dozens more blockchains are effectively operating in isolation, due to a lack of in-built interoperability. This has had a knock-on effect of dividing the blockchain community, who often need to pick and choose which platform to get to grips with and support.

As it stands, to interact with services on multiple blockchains, users would need to have at least a basic understanding of how that platform works, hold a wallet, and own at least some of its native assets. Understandably, few individuals and businesses want to go through the hassle of familiarizing themselves with multiple platforms.

Over the years, a range of options has been pushed as potential solutions to this challenge. These include interoperability solutions like Polkadot, which enables interblockchain communication by connecting distinct blockchains through a central relay chain. As well as Cosmos’ interblockchain communication protocol (ICP), which allows homogeneous blockchains to exchange data and value by providing a single standard for communication.

Image credits: Cosmos

But despite this, some of the earliest and least complicated solutions are providing to be the most effective. We’re talking about bridges — deceptively simple platforms that allow users to easily move their assets from one blockchain to another (a process known as bridging).

The way these platforms work is typically relatively simple. Let’s say you want to move 500 USDT from the Ethereum network to Avalanche. You’d select your bridge, choose your input (Ethereum) and output networks (Avalanche), select the asset (USDT) and amount (500, enter your output address (your Avalanche address) and initialize the bridge. The bridge smart contracts would then burn 500 USDT on Ethereum, and mint 500 USDT on Avalanche — effectively moving 500 USDT between chains without running the risk of accidentally doubling the total amount of USDT in circulation.

Other bridges, such as Celer’s cBridge, keep liquidity pools on each chain rather than burning tokens. When a user bridges their assets, their funds on the origin chain are simply added to that chain’s asset pool, while the equivalent amount of funds on the destination chain are released to their address. This effectively accomplishes the same thing, without requiring token burns (a feature not all blockchains support).

The platform is able to support trustless any-to-any liquidity transfers across close to a dozen networks (including Ethereum, Polygon, Binance Smart Chain, Arbitrum, and Avalanche) and has seen its use soar in the last four months, climbing from $10m total volume in its first month to over $10m per day in October — demonstrating the rapidly increasing demand for cross-chain liquidity.

The team behind the platform is now finishing up v2.0 of cBridge — bringing with it increased liquidity, more chains, improved benefits for liquidity providers, and more.

Other platforms, including the PancakeSwap bridge, Terra Bridge, and even Binance’s bridge platform have also seen a dramatic uptick in use over the past several months, as an increasing number of users look to interact with projects and services building on alternate blockchains.

By effectively solving the liquidity issue by allowing users to move their assets from one blockchain to another at low cost, without requiring a steep learning curve or excess capital, cross-chain bridges are quickly becoming the go-to solution for those looking to regularly interact with multiple blockchains.

And given their rapid adoption in recent months, it looks likely that they will continue to gain momentum in the months and years ahead as more people recognize the benefits of utilizing multiple blockchains.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Boosted Finance (BOOST) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 17.81 (-100%)

protocols users platforms tools each designed boost

protocols users → Результатов: 126


Фото:

Panther Protocol Partners With NEAR Blockchain To Develop Its Privacy-Centric Technology On The Network

Panther has the vision of a surveillance-free decentralized world for DeFi and Web3 users, where DApps and protocols have privacy features by default. The protocol also aims to connect all EVM compatible blockchains through a privacy layer, allowing users to share whatever information they choose, thereby balancing trust and privacy. Part of achieving this goal […]

2021-10-1 22:00


SCB 10X invests in new cross-chain DeFi aggregator platform Ape Board

SCB 10X, the venture arm of Thailand’s oldest bank, has announced an investment in the decentralized finance (DeFi) sector via crypto-asset aggregator and portfolio dashboard, Ape Board. Ape Board provides a holistic view of users’ DeFi portfolios with actionable insights; enabling users to easily link investments across a variety of DeFi protocols on a single […] The post SCB 10X invests in new cross-chain DeFi aggregator platform Ape Board appeared first on CryptoNinjas.

2021-7-15 06:31


QuickDuck.finance – Advanced Technology, Low Commissions and Integrity for Users

The QuickDuck. finance protocol works similarly to PancakeBunny, but in a new network with instant transactions and significantly lower gas fees. It is based on the most powerful Polygon (MATIC) network Yield Optimizer – QuickDuck, with an extremely effective implementation of mechanisms of the largest farming protocols: PancakeBUNNY, PancakeSwap, QuickSwap, and UniSwap.

2021-5-17 21:28


Фото:

Oddz Finance Integrates With Polygon (Formerly Matic Network) To Bring Options Trading To The Masses

Multi-chain options trading platform – Oddz Finance has now integrated with Polygon (formerly Matic Network) to make DeFi accessible to all users. The DeFi craze that started in the summer of 2020 has led to a significant jump in the number of DeFi protocols being developed on the Ethereum blockchain. As more and more users […]

2021-5-12 18:47


Join the DeFi train with Clever DeFi, a yield farming platform with fortnightly interest payments

Yield farming is a phenomenon that has driven decentralized finance (DeFi) in the past 12 months. Several yield farming protocols have emerged, offering users immense rewards for staking their tokens The post Join the DeFi train with Clever DeFi, a yield farming platform with fortnightly interest payments appeared first on AMBCrypto.

2021-4-7 18:15


The Elephant in the Room: How This Project Addresses Human Reliance in Token Economy Models

Blockchain and DeFi protocols are only as strong as their weakest link With today’s ever-growing blockchain landscape, token economies are bigger and more active than ever. When it comes to DeFi (decentralized finance) in particular, there is nearly $44 billion locked in decentralized finance protocols, with users around the globe forming part of various innovative […]

2021-3-31 13:00


DeFi “DNS Hijack:” Cream Finance Deployed to New Domain, PancakeSwap Regains Access

Decentralized finance (DeFi) protocols Cream Finance, and Binance Smart Chain (BSC) based PancakeSwap are reporting DNS (Domain Name System) “hijacks” of their respective platforms. Lending protocol Cream Finance tweeted on Monday, “Our DNS has been compromised by a third party; some users are seeing requests for seed phrase on http://app.

2021-3-16 20:22


Фото:

1inch Exchange Extends to Binance Smart Chain (BSC) Amid Rising ETH Gas Fees

In a “natural step,” 1inch Exchange, the decentralized exchange (DEX) aggregator, is expanding to the Binance Smart Chain (BSC), as per an announcement on Feb 25. Extension to Binance Smart Chain (BSC) Consequently, they are deploying the 1INCH token on the BSC, availing 1inch Aggregation and Liquidity protocols, including staking features, to BSC users. TenRead More

2021-2-26 07:16


Фото:

What is PIVX and Why Is It Primed for an Explosive 2021

As one of the most technologically equipped and advanced blockchain protocols, PIVX is a financial user data protection-oriented digital currency that leverages cutting-edge ZK-powered SHIELD technology to give the users the liberty to choose whether they want to receive and send transparently (akin to bitcoin) or anonymously (like Monero, Dash, Zcash).  For the uninitiated, theRead More

2021-2-25 12:00


Hxro selects Solana L1 in transition to decentralized trading network

CryptoNinjas » Hxro selects Solana L1 in transition to decentralized trading network HXRO, a crypto trading platform that offers users an uncomplicated way to play the markets, has chosen Solana as its L1 blockchain partner, to help it move to a fully decentralized trading network powered by protocols that simplify and solve the complexities of trading.

2021-2-6 17:43


PlasmaPay introduces DeFi dashboard and portfolio management service

PlasmaPay, a digital payment platform enabling seamless entry into decentralized finance, has announced the launch of its DeFi dashboard, and portfolio management service, Plasma. Finance. This new dashboard will give users access to the most popular protocols in decentralized finance (DeFi) by putting everything on one interface.

2020-12-10 05:20


Researchers Expose Key Security Weaknesses on Crypto Exchanges That Need to Be Addressed

During Wired’s Black Hat Security Conference, held on Aug. 6, Aumasson and Shlomovits discussed three key flaws on crypto exchanges storage of users’ funds. According to their research, crypto exchanges are time and again falling to these weaknesses due to weak or failure to correctly implement the security protocols.

2020-8-11 19:48