A decentralized token bridge that connects Ethereum and BSC

Blockchain technology is constantly changing and has seen significant changes from 2008, when Satoshi Nakamoto first introduced the world's very first cryptocurrency, Bitcoin in the entire world. Bitcoin brought blockchain technology to the forefront. Since then, a variety of different blockchain-based platforms have developed. 

Each one has its own distinct capabilities and features to bridge the gap between blockchain technology and its practical applications. 

In spite of the many advantages of blockchain technology, like its decentralization, inexplicable nature of records, distributed ledgers, and smart contract technology, one significant obstacle still hinders the adoption of blockchain technology on a mass scale, which is the inability to interoperate.

Although blockchains that are public maintain transparency of the data on-chain however, their siloed nature restricts the broad use of blockchains in finance decentralized and other fields. Blockchains offer unique capabilities that many users want to combine. But, it's not feasible since these blockchains operate independently within their own isolated ecosystem and adhere to their own specific consensus rules. Blockchains that are independent can't communicate with one another to exchange information or to exchange value.

What are blockchain bridges?

Blockchain bridges allow the interoperability of and connection between two distinct blockchains that work with distinct consensus systems. Simply put the blockchain bridges enable two blockchains to communicate with one another. 

Blockchains can share smart contracts execution procedures, swap tokens, and also share resources and data in between distinct blockchains since they no longer be limited by their source. 

Blockchains are able to access data off-chain like access to live charts of the market. The most popular bridges for blockchain include xPollinate, Matic Bridge, Binance Bridge. Blockchain bridges bring the following advantages to users:

Users can take advantage of the advantages of two different blockchains to build dApps instead of solely using Solana, the blockchain hosted. This means that users can create a dApp using Solana and then make use of Ethereum's smart contracts technology.

Users are able to transfer tokens from a blockchain that has fees for transactions to another blockchain, where transactions are generally less expensive.

With the capability to instantly transfer tokens users can change from an unstable cryptocurrency to Stablecoins in a matter of minutes without the assistance of an intermediary.

You can also store digital assets using an application that is not centralized, and it's based on an alternative blockchain. For instance, one could develop NFTs that are based on the Cardano blockchain and store these for sale on Ethereum's Ethereum marketplace.

Bridging lets users run DAPPs in multiple blockchain ecosystems.

What are the Types of Blockchain Bridges?

To fully understand the workings of blockchain bridges we must first understand the different types of bridges that are available. There are two kinds of blockchain bridges are in use which are a federated bridge and the trustless bridge. Let's look at their mechanism of operation.

Bridges with Federated

A federated bridge can also be called a central bridge. It is basically a type of central exchange in which users communicate with an entity that could be a corporation or middleman. If the transfer of tokens occurs in exchange for Ether and BNB it will result in two pools, one with BNB as well as another one that contains Ether. Once the sender begins the transfer using Ether it is transferred to the BNB pool and the pool will then send the same amount of BNB from the other pool. Central authority is charged an unspecified amount of money to oversee the procedure. However, it is small and users are able to pay easily.

Bridge with trustworthiness

These are the decentralized bridge that removes the involvement of any third party. Trustless blockchain bridges do not utilize an API to manage the process of making and burning tokens. Instead, the smart contract plays an important role in this. When an individual initiates the transfer of tokens using the bridge with trust, the contract will freeze his current cryptos and give him an equivalent token in the brand new system. The smart contract will then mint the token as it is aware that the user already burned or frozen tokens from another network.

Why is a Bridging Solution Needed?

The following are the top three reasons why a blockchain bridge or bridging system is important:

Multi-blockchain token transfer

The most obvious but crucial function of the Blockchain Bridge is that it allows cross-blockchain exchange. Users can immediately mint tokens on their desired blockchain without the need for any time-consuming or costly exchange procedure.

Development

Blockchain bridges allow different blockchains to grow by harnessing the strengths of the other. For example, the functions of Ethereum can't be accessed on BSC. Bridging solutions let them work together and grow as a team to overcome the problems that are arising in the world of blockchain.

Transaction fees

The final major reason for the necessity of an alternative to bridge the gap is due to transaction costs, which are often very excessive on the most popular blockchains. However, the latest blockchains don't have fees for transactions, even though they aren't secure and lack other important features. Bridges enable users to connect to new networks, add tokens to the network and also process transactions at affordable cost.

Conclusion

The development of blockchain bridges has helped make blockchain a commonplace technology. Bridging solutions are also a part of the DeFi application design, which helps to facilitate the idea of a decentralized, financial system. 

Through facilitating connections between various blockchains or by working together with blockchain bridges, users can move towards the next generation of a decentralized system. It aims to remove the control of the central system within the business environment. Blockchain is expected to create a variety of new concepts to create new bridges and foster more innovation and technological advancement.

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