Cross-chain bridges. Relictum cross-chain bridges
Money is an important part of life in the physical world. People use it to pay rent, buy food or travel. When it comes to international travel, they follow a familiar scenario to exchange their money for the currency used by the destination country. Web 3.0 features a similar mechanism called cross-chain bridging.
A cross-chain bridge, also known as a blockchain bridge, is a connection between two blockchains that can be used to perform actions like moving assets or data from one chain to another. Technically, this creates an interaction between two ecosystems. In addition, the bridge is also needed due to the growing number of decentralized apps (dApps) on various blockchains and “level 2” solutions. Their goal is to improve their own unique features associated with security and trust.
Importance of cross-chain bridges
Differences in protocols, managing structure, and other factors limit the ability of various ecosystems to interact. This is due to certain limitations of the blockchain ecosystems. This means that a particular network is unable to monitor and understand the activities of other networks. However, blockchain bridges create interoperability within Web3. The isolation of each blockchain economy requires mandatory use of a blockchain bridge.
How does it work?
Token transfer is one of the many ways a blockchain bridge operates. Smart contracts are used to lock up a certain amount of cryptocurrency that a user is willing to transfer from one blockchain to another. A tokenized version of another cryptocurrency, also known as a “wrapped token”, is usually unwrapped immediately after the first token type is locked.
Bridge types
There are two main types of cross-chain bridges:
Trust-based bridges include a central system employed to verify and confirm user transactions when converting coins into various cryptocurrencies. Users rely on and trust control of their assets to centralized bridge operators. Fast and low transaction fees are some of the benefits of using trust-based bridges.
Trustless bridges use smart contracts and algorithms in all their operations. Unlike trust-based bridges, decentralized bridges lack operators responsible for executing transactions. As such, users do not have to worry about transferring their assets. Transparency and full control over assets are the benefits of using trustless bridges.
Relictum Blockchain bridge
There are many blockchain bridges aimed at the highest degree of interoperability. The Relictum Blockchain team is actively involved in this process and develops its own cross-chain bridges designed to ensure secure transactions among networks, including all the benefits of Relictum Blockchain.
Benefits of Relictum Blockchain bridges
Aside from interoperability, there are other benefits of blockchain bridges.
Scalability: bridges are able to handle a large volume of transactions by distributing traffic across many ecosystems. The connection created by bridges increases the network scalability.
Efficiency: low fees result from using bridges. Besides, assets can be moved from a non-scalable chain to a better performing one. Inexpensive and fast transactions open the way for DeFi and dApps.
Flexibility: cross-chain bridges help users transfer their data and assets with the added benefit of accessing blockchain technologies.
Interoperability: bridges ensure connectivity not only between blockchains, but also between parent and child chains, which enables to deploy dApps on the DeFi platform.
Conclusion
Multiple challenges and changes are expected in the cryptocurrency economy with the continuous promotion of innovation, free trade, and economic growth. As the number of blockchain networks continues to grow, they keep struggling with the same thing: the boundaries that separate one ecosystem from another. Blockchain bridges are some of the vital factors offering a promising path to building the big future of a public decentralized network. The joint efforts of great developers to solve problems within the community are taking Web 3.0 to the next level, promoting not just innovation, but also technological relevance and user acceptance.
Relictum Blockchain expands options for users to improve security, efficiency, and scalability. Blockchain bridges will help transform the Internet by ensuring the smoothest user experience and creating an innovative and exciting bridge to the financial world.
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