Steemit Crypto Academy Contest / S5W1 - The Blockchain Bridge.
Just like how our physical bridges connect or join one road to another is the same way Blockchain bridge also function. Blockchain which can be described as a specific form of database where digital currencies are traded which stores information in a block form which are then chained to one another.
Database stores up data and information electronically in a computer system. Blockchain are usually in a tabular form where information are entered and arrange in other of arrival.
Blockchain works in cryto such as bitcoin which is made up of thousands of computer network system which is control at different locations by different people. Nodes are made through this network. The blockchain operation are decentralized in a way that on going transactions are seen through personal nodes and blockchain explorer.
In today's world of crytosystem, blockchain bridge has become an integral part of it. Due to the fact that Blockchain operations are carried out in a silo form, hence, communication between a digital currency and the other is not possible.
Blockchain bridge provides solution to this problem in such a way of enabling interoperability possible between several Blockchains. Bridges are grouped into trust and trustless bridges.
What are the benefits of the blockchain bridge? How does the bridge work?
One of the benefit of Blockchain bridge is that it promote scalability by handling large transaction. Also helps in exchange or transfer of various digital currency, information and asset. Transactions are also done on a Lower transaction rate. Also the benefit of other platform can be leveraged.
As said initially that various types of digital currency cannot be trades on a particular Blockchain, therefore, Blockchain bridge help to eliminate this. For illustration, if a user has an Ethereun Blockchain and wishes to pay his creditor who has a Bitcoin Blockchain.
Here, Ethereun can't be transferred directly to bitcoin Blockchain. This can be seen as a big challenge in the cryto world. Hence, this is eliminated by bridge.
This is where Blockchain bridge work began, the bridges give the users the privilege to put a volume of a digital asset on a single Blockchain where it is being minted into another Blockchain with the same amount. This whole process brings up a new asset referred to as wrapped token.
Therefore, wrapped bitcoin can be sent into an Ethereun Blockchain.
Highlight the types of blockchain bridges by category. Pick an example of a blockchain bridge in existence and explain how it works.
Trust Bridges.
Most users prefer to make use of this bridge because they consider there funds safe and secure because of the reputation on there operators. All operation or control are carried out by the operator. Hence, this type is centralized in nature.
Trustless Bridges
The users takes full control here and responsible for all activities. This is a decentralized system.
Classification by function which is the wrapped asset bridges and the side chain bridge.
How Wrapped Asset Bridge works:
Let's take 2 users for example. User 1 named Hammad uses blockchain while the User 2 named Sodiq uses Ethereun. Hammad bought some goods from Sodiq but due to some facts, Sodiq prefer to be paid in digital currency which is the Ethereun he uses which is unfortunate for Hammad who uses Bitcoin.
Hence, the existence of wrapped as bridge as made things easier. Hammad just have to grant or convert his bitcoin into wrapped token. Therefore, he just send a specific amount of his bitcoin to blockchain in which the amount of bitcoin sent is minted into eWrap. Therefore, he transfers the minted bitcoin which as become eWrap or wrapped token to Sodiq's Ethereun platform. That's exactly how wrapped asset bridge works.
Are there limitations to the blockchain bridges? What do you think about the future of blockchain bridges?
The limitations of the blockchain bridges can be seen in the risk involved like in a situation where bridge operator stops users from minting there asset or digital currency. In some cases, those operators can indulge in the act of stealing users funds. Spamming, human error, system failure, system hacking are also problem encountered in the use of bridges.
The future of blockchain bridges is will be a great one where users will trade different currencies conveniently without fear. Blockchain bridges will also work like interbank transfer with the rapid technology advancement of today.
In the future, medium will be put in place to eradicate the problems and limitations encountered in the use of those bridges. Therefore, advanced system would be established through the help of blockchain bridges operators due to there high experience on the bridges over the years, hence, they know the pros and cons of this platform.
I love your explanation about the blockchain bridge, it links one blockchain to another to allow interoperability for tokens and data sharing even when the chains work on different protocols.
I agree with you that hacking is one of the limitations of the blockchain bridge as I read about many cases of that before in the blockchain bridge space.
Hey pals,
You have really written well friend and this is full evidence that you aren't new to the crypto world and you understand the topic Blockchain bridge very well, Blockchain bridge would really be upgraded with more advance features and this would also improve and upgrade to the Blockchain technology positively and greatly.
Thank you very much for sharing, please you can check my own entry here
wishing you success