Steemit Crypto Academy Contest / S5W1 - The Blockchain Bridge.
Blockchain bridges are protocols that enable communication between two or more different blockchains. Working with different protocols, system rules, and programming languages are Ethereum and Bitcoin's two blockchains, respectively.
Communicating across these blockchains is therefore challenging. These blockchains are now linked to allow interactions between them thanks to the blockchain bridge, which was just introduced.
THE FUNCTION OF THE BLOCKCHAIN BRIDGE
The blockchain bridge's main job is to make interoperability possible. Interoperability describes how well data and digital assets stored on the Blockchain can communicate with one another. The Internet requires interoperability in order to function as a whole in the cyberspace.
Different protocols make up the blockchain. Blockchain bridges are therefore necessary to enable the efficient transfer of information and value between different protocols.
It only requires a few simple steps to bridge. The chain you want to bridge from and by how much must first be determined. Then, you must send the required quantity of cryptocurrency to the address that the bridge generated. The blockchain bridge will deliver you the wrapped token equal to the value of the crypto after receiving it at the other end. The Ethereum bridge, the Binance bridge, and other blockchain bridges are currently available.
Blockchain bridge operates in several ways. Token transfer is the most typical method. This approach uses smart contracts to lock the amount of cryptocurrency you intend to send to another blockchain. Wrapped token, which designates a tokenized version of another cryptocurrency, is a different phrase used in blockchain bridge. It can be opened at any time and is typically tied to the assets it refers to.
TYPES BLOCKCHAIN BRIDGES
There are two types of blockchain bridges, these are explained below:
Custodial: Custodial blockchain bridges are managed by a single central body, therefore users must have complete faith in that company to run the system securely and correctly. If the users opt to employ custodial bridges, extensive research on this entity is advised.
Non-custodial bridges: They function independently of one another. For crypto mining and locking, they rely on smart contracts, so there is no need to put your faith in a single operator to ensure everything runs smoothly. The system's security and integrity are upheld in this kind of bridge.
THE DISADVANTAGES
1 Attackers may use certain smart contracts' weaknesses, which include any loopholes.
2 Custodial dangers can occasionally be presented to users by custodial bridges.
3 Blockchain bridges link different blockchains together. As a result, the connected network's overall security is not very good.
THE ADVANTAGES
1 As some blockchain bridges are able to handle numerous transactions, this also helps with scalability problems.
2 The biggest benefit is improved interoperability.
3 Blockchain bridges provide users faster transactions and lower transaction costs.
WHAT I THINK ABOUT THE FUTURE OF BLOCKCHAIN BRIDGES
The Internet can be completely transformed via interoperability. Enhancing the interoperability of blockchain networks and, ultimately, their widespread adoption, requires the use of blockchain bridges. Users, bridges, and the total volume of transactions on these bridges have all grown exceptionally. As the Internet transitions to Web3, the blockchain bridge will also continue to expand.