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What Are Cross-Chain Bridges

The main task of cross-chain bridging is overcoming barriers to direct links between various types of distributed databases or ledgers, i.e. blockchains. The HowSimpl team has prepared an overview of what is a bridge in crypto, what does a cross chain mean, and how you can benefit from using it.

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What Are Cross-Chain Bridges

The main task of cross-chain bridging is overcoming barriers to direct links between various types of distributed databases or ledgers, i.e. blockchains. The HowSimpl team has prepared an overview of what is a bridge in crypto, what does a cross chain mean, and how you can benefit from using it.

Why Cross-Chain Bridges Are a Must in Web3

So, what is bridging crypto? The Web3 world consists of numerous networks, each with its own regulations regarding protocol architecture, currencies, and culture. This diversity poses a significant issue: seamless network interconnection is not inherent. Consequently, the absence of inter-chain connectivity limits the potential of Web3.

However, the Web3 ecosystem can flourish by interacting with various networks and application-specific platforms. This interconnected world allows each cryptoecosystem to capitalize on its strengths while taking advantage of the collective wealth and innovation available through cross-chain trading.

What is a Crypto Bridge and How Does It Work?

First of all, let’s consider what is a blockchain bridge. Essentially, this protocol involves a process where tokens are either locked on the originating chain through one transaction protocol and then unlocked on the target blockchain through another protocol.

This process comprises two primary components: the relayer (an application capable of operating on both networks), and the bridge contract (a smart contract on one side). Initially, the user contacts the relayer. The smart contract receives the instructions and then executes the necessary actions, hence, completing the operation. This is what is bridge in crypto and how it operates.

For instance, you possess $500 worth of USDT in your BTC wallet and wish to buy some tokens through your ARB wallet. This way, Binance Bridge (or any other protocol that you chose) will facilitate transactions between two wallets.

Classification of Cross-Chain Bridges

Once you know what is bridging in crypto, let’s move on to its classification. Federated bridges represent a prevalent model that employs trusted entities for authorizing token transfers. Relay bridges simplify data transmission among diverse chains. They often rely on dedicated networks and ensure mutual security and interoperability this way. Also, there are sidechain and wrapped token bridges.

Cross-Chain Bridge Example

These links are critical in creating an easily accessible DeFi infrastructure. The way of how do crypto bridges work offers a greater range of transactions, investments, and improvements by linking previously isolated chains. Prominent examples of what is bridge crypto are Binance, Arbitrum, Synapse, Portal Token and Avalanche Bridges among others.

HowSimpl offers to build blockchain bridges. You can discover how we teamed up with Defiway, a Web3 company that provides simplified crypto payment solutions for both natural and corporate persons around the globe.

How to Build a Cross-Chain Bridge with HowSimpl

If you are considering creating your own blockchain project, all you need to do is contact our team for an initial consultation. The rest of the work will be done by our developers and marketers. So, it’s now time to show you how our developers create a blockchain bridge. After negotiating the project with the client, we do the following steps:

  1. We start by identifying the networks you intend to interconnect. This is the first thing that determines what is a cross-chain bridge in your specific project.
  2. We choose architecture. Relay bridges function through multiple nodes, whereas federated ones rely on a consortium of trusted nodes to authorize transactions.
  3. We design the protocols that govern asset transfers. These protocols establish the rules for maintaining the safety of the transfer process itself.
  4. The next step is software development. 
  5. The final stage is testing and deploying. We implement extensive testing to guarantee that the solution is reliable in operation. Once tested, it can be used on the two networks of your choice.

Final Words

As you can see, cross-chain bridging is highly important in the DeFi ecosystem and its potential for future growth is tremendous. Think of building your own blockchain bridge? You are in the right place. We at HowSimpl offer a full package of services that includes cutting-edge blockchain development, exceptional design, and strategic marketing.

Contact us to get a free consultation on your Web3 project.

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