Blockchain is a decentralized public ledger system where data is secured anyone can see and A bridge is always helpful to cross from one place to another, in the cryptocurrency world, it is also helpful in accessing a transaction from one blockchain to another in the simple and easiest way. A blockchain bridge is a protocol that attaches two blockchains to enable interactions between them. If you have bitcoin and you don't want to participate in Defi activity on another network, A blockchain bridge allows to user to do that without selling your coin. A bridge can allow a transfer of ETH to Bitcoin Blockchain without having to sell the ETH to buy BTC.
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A user wants to use his bitcoins from the bitcoin blockchain to another coin's blockchain. It will work if another blockchain bridge facility is available and they have enough liquidity available for similar transactions from one blockchain to another blockchain.
Here are some benefits of Blockchain-Bridge mentioned below:-
| Sr.N | : | Benefits |
|---|---|---|
| 01 | Scaleability | Blockchain bridges also help increase scalability. best blockchain bridges offer to process multiple transactions. |
| 02 | Explore dApps | Sending of tokens across blockchains, users can explore apps without incurring charges. |
| 03 | Low Transaction Charge | It helps the transfer of tokens from one blockchain to another without involving swap tokens, Users could use a bridge to send their token to another blockchain for faster and lower cost processing. |
Working of Blockchain Bridges
The basic duty of blockchain bridges is to facilitate cross-chain data communication. This is very important as different Blockchains can now collaborate to create efficient products for on-chain users.
If I have some steem coins and I want the same quantity of BTC I will send it when I want, I don't need to wait for any specific time or paperwork for third-party interference like in a centralized field. another big advantage is that users don't need to wait and need to sell their bitcoins in multiple places and pay high fees.
You must first decide which chain you want to break and by how much. The specified cryptocurrency must then be deposited to the address the bridge generated. The blockchain bridge notifies you after the opposite end has received the cryptocurrency.
There are two types of blockchain bridges which are custodial Centralized and non-custodial Decentralized. I'll explain better below:
- Centralized Bridge.
- DeCentralized Bridge.
Category based on Functions
- Multi-chain blockchain bridge.
- Sidechain blockchain bridges.
- Wrapped coin bridges
screen shot taken by blockseater
Example of a blockchain bridge
Website: https://crosschainbridge.org Germany-based Tixl organization develop this which was rebranded as the Autobahn Network in March 2022. Cross-Chain Bridge has support for bridging both tokens and NFTs across different networks. Along with within 4 to 5 minutes, our transaction also executes without issues. This cross-chain bridge supports many chains but here I mention some of Avalanche, BNB Chain, Polygon, Ethereum, and Fantom. And support many popular tokens Bulk Token, Candle, DAEX Token, TribeOne, Moonie NFT, Polychain Monsters, Realm Token, Autobahn Network, UnitedCrowd Token, USD Coin, Tether, and Wrapped Ethereum.
Blockchain bridges have some limitations.
Risk of hackers
The risk of funds brings a limitation to blockchain bridges. transactions are being withheld in the Wrapped token of the network which will be processed to the network the user is getting to, during this process, there could be theft of funds.
Security
Connecting from one blockchain to the other can lead to complex security as each has differences. that may expose users to some security threats.
Future of Blockchain Bridges
The future of blockchain bridge is very bright, this update has enabled cross-chain and blockchains to share assists easily to reduce the time and high swapping fees. now blockchain users could easily use bridges for their transactions. thanks to Steemcryptoacademy for this kind of informative article i learned many things
I inviting my friends @jeff-kubitz @solaymann @alexan1
This is what is known as interoperability between blockchains and it is a function of the blockchain bridge. The development that has made easy for cross-chain exchange of tokens and value. Hacking is truly one of the limitations of blockchain bridges at this time.
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Why are you transferring your STEEM to @nabeeel's Binance account? Your achievement 1 is also suspicious where you stated that you found out about Steemit through a YouTube video but you were in direct contact with Nabeel and @vvarishayy. @event-horizon has confirmed your achievement 1 without asking any further questions. Surprisingly yesterday you made a wrong post with the wrong account which means you are using multiple accounts as the post was in Urdu. So it will not be wrong to say that you are also a fraud.
Welcome to Pakistan's first cheater witness to steemt miss block seater.
A pleasure to meet you Miss and I love your talent @mohammadfaisal.🤣
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Hey friend,
Wow welcome to the engagement challenge I hope you get selected as 🏆, although it's my third but my favorite because it's has really taught me about so many things about the crypto world. Infact before now I never knew of the term Blockchain bridge but now I can gladly say that I am greatly knowledgeable about the topic.
Thank you very much for sharing, please you can check my own entry here
wishing you success
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