Comparing Blockchain Bridges
So let’s switch up the content here to something different.
To have a grasp of what a blockchain bridge is, you need to first understand what a blockchain is. Bitcoin (BTC) and Ethereum (ETH) are some of the major blockchain ecosystems, all relying on different system rules, consensus protocols and programming languages.
A blockchain bridge is a protocol connecting two economically and technologically separate blockchains to enable interactions between them. These protocols function like a physical bridge linking one chain to another, with the chains being separate blockchain ecosystems.
Thus, blockchain bridges enable what is called interoperability, meaning that digital assets and data hosted on one blockchain can interact with another. Interoperability is the cornerstone of the internet: Machines worldwide use the same set of open protocols to talk to each other. In the blockchain space, where there are many distinct protocols, blockchain bridges are essential to enabling a similar ease of exchanging data and making transactions.
But why do we need blockchain bridges?
As the blockchain space grew, one of the most significant limitations was the lack of capacity of different blockchains to work together. Each blockchain has its own rules, tokens, protocols, and smart contracts. Blockchain bridges help link these islands and bring the isolated crypto ecosystems together. An interconnected network of blockchains can allow tokens and data to be exchanged between them smoothly.
Aside from enabling cross-chain transfers, blockchain bridges provide other benefits. They allow users to access new protocols on other chains and enable developers from different blockchain communities to collaborate. In other words, blockchain bridges are a critical component of an interoperable future of the blockchain industry.
Choosing a bridge:
There are a lot of bridges out there and I can say I have used a couple in the little time that I have been in the crypto space. Here are some of the most talked-about blockchain bridges you can use to transfer crypto:
- AnySwap. This platform is popular for having features other than transferring crypto. Once connected to a wallet, you can see all of your balances across different types of coins. You can also freely transfer balances from one place to another. However, there are certain blockchains where, if you want to transfer from, you can only go to a specific destination.
- Bridge: Bridge network is building a cross-chain super dApp to enable seamless transactions between blockchain ecosystems. The cross-chain protocol (CCP) aims to be a one-stop-shop for all major cross-chain activities by providing the tools a user might need to transact in the multi-chain world.
- LayerZero: LayerZero is an interoperability protocol that uses a novel technique to make it easier for different blockchain networks to connect with each other.
- Synapse: Synapse is a universal cross-chain liquidity network. Synapse connects blockchains by offering an extensible cross-chain communication protocol that supports assets, smart contract calls, and more.
Comparative Analysis
For me, having to find one bridge that can do most if not all of my transactions was a struggle and it took some time before I finally found one. So here’s an analysis of my experience with each of the above mentioned bridges:
Closing thoughts
Decentralization has always been the defining factor of blockchain and the development of the blockchain industry is driven by constant innovations.
Blockchain bridges are a sign we are getting better and with more bridges coming up, we may be getting closer to an innovative and normalized crypto economy.
