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Over the past few months, the technology of cross-chain bridges has developed a lot and users can now exchange assets between a myriad of networks. Today, between eight different bridges, a total value of $ 7.6 billion is locked on these platforms.
Transverse bridges
There is a decent amount of cross-chain blockchain bridges out there today and this has allowed users to do a variety of different decentralized finance (challenge) techniques. Interestingly, many bridges connect to the Ethereum (ETH) network because they are compatible with Ethereum Virtual Machine (EVM).
Since these connections were made, great value has flowed between a myriad of chains and the Ethereum blockchain. The following post mentions a number of bridges that cryptocurrency participants can use to conduct cross-chain exchanges.
Tezos Wrap Protocol Bridge
The Tezos blockchain (XTZ) is a proof of stake (PoS) blockchain network that operates validation nodes often referred to as bakers. XTZ users have the option of bridging the Ethereum blockchain because a team called Bender Labs has developed a bridge called Wrap Protocol.
Essentially, the Wrap protocol developed by Bender offers users the ability to encapsulate ERC20 and ERC721 tokens in order to exploit them with different challenge applications.
Binance smart chain bridge
Another blockchain compatible with Ethereum is Binance Smart Chain (BSC). BSC offers the same smart contract capability, but the charges on the BSC chain are much cheaper. Binance Chain (BNB) users can switch from BNB to BSC through the BEP20 standard and a cross-chain bridge.
Binance Wallet is an extension wallet that can perform cross-chain BNB to BSC trading. At the same time, users can take advantage of Binance Bridge to handle cross-chain transactions as well. US users and a number of other countries may have to use a VPN to access Binance Bridge.
The Solana Wormhole Bridge
Solana (SOL) also has a bridge and the Wormhole Network ethereum – solana bridge launch was revealed on September 17th. The Wormhole Token bridge connects Ethereum and Solana and users can trade assets on both blockchains.
“The portal is open,” details the wormholenetwork.com website. “Wormhole offers new channels of communication between previously siled blockchains. Current wormhole statistics from Dune Analytics indicate that the Solana wormhole has a total locked-in value of $ 382,471,804.
Avalanche bridge
Another chain compatible with Ethereum is Avalanche (AVAX), a proof of stake (PoS) blockchain. AVAX participants can link AVAX assets to Ethereum by taking advantage of the cross-chain capabilities offered by the Avalanche wallet.
Users of this wallet can trade their AVAX for a small fee between the Avalanche network and the Ethereum network. Once a cross-chain exchange is settled on the Ethereum chain, participants can send the funds to a wallet like Metamask, as long as they set up Metamask on the Avalanche network.
Bitcoin Cash Smartbch Bridge
Bitcoin Cash (BCH) is another channel now compatible with Ethereum through the Smartbch network. This means that bitcoin cash (BCH) can be packaged and used for decentralized financial purposes. Currently, there is only one Smartbch bridge powered by the Coinflex crypto-asset exchange.
Users can access Coinflex through Metamask instead of signing up via email, and users can redeem their BCH for Smartbch almost instantly, after hours of confirmation. Essentially, a user simply deposits BCH and sends Smartbch leveraging the SEP20 token protocol standard upon withdrawal. From there, once a Metamask wallet is set up on the Smartbch network, Metamask users can take advantage of the packaged bitcoin cash.
Research guides on how to use bridges before crossing them
The above list only scratches the surface when it comes to cross-chain exchanges, as there are bridges from blockchains like Cosmos, Fantom, Polygon, Terra, Harmony, Near, Optimism, and Harmony.
Cosmos users can connect with a Keplr wallet and connect to Ethereum through Emeris. Close participants can collaborate with Ethereum through the NEAR Rainbow Bridge. Fantom users can chat with spookyswap or multichain.xyz and Polygon network participants can chat between channels through the Polygon bridge. Terra assets can be traded between Ethereum and Terra via bridge.terra.money.
However, using cross-chain bridges requires patience and prior knowledge from walkthrough articles and step-by-step instructions on how to operate blockchain bridges. Funds can be lost if mistakes are made and users should always do due diligence before accessing cross-chain bridges or decentralized finance (challenge) applications in general.
What do you think of the five cross bridges mentioned in this article? Let us know what you think of this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Smartbch, AVAX Portfolio, Blender, Binance, Wormhole,
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.
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