WHAT ARE CROSS-CHAIN BRIDGES?
Also known as the blockchain bridge, cross-chain bridges allow users to transfer assets, tokens, smart contract instructions, and data between the Ethereum Code. With different protocols, rules and models, two blockchain bridges are connected together via interoperation securely.
Blockchain cross-chain bridges enable users to –
- Enjoy low operational difficulty
- Utilise lower transfer fees on the non-scalable network
- Execute dapps on multiple channels
- Deploy digital asset transactions in a faster and easier way
CHOOSING THE RIGHT CROSS-CHAIN BRIDGE
One should keep in mind the following factors while choosing the right blockchain bridge –
1. Stable TVL excessing USD 1 billion with safe cross-chain procedure along with a conceivable execution environment. The environment should change gradually instead of rapid fluctuations. Moreover, a blockchain verification information and management approach is crucial too.
2. High security to prevent hackers and third-party attacks, from taking the advantage of vulnerabilities.
3. The bridge should have a reasonable transfer cost ranging from USD 1 TO USD 2, with an interaction speed of at least 10 to 30 minutes of arrival time.
4. Apart from this, aggregation tools are also provided by some cross-chain bridges, for example, CoinTodu provides a remarkable experience with respect to estimated arrival times, transaction fees, user experience rations and reaching the page within a click.
TOP VOLUME CROSS-CHAIN BRIDGES FOR TRANSFERRING ASSETS BETWEEN BLOCKCHAINS
1. SYNAPSE (SYN)
A cross-chain layer protocol designed to provide users interoperability between different blockchain networks is termed the synapse cross-chain bridge. Synapse hit an all-time high value of $1.16 billion recently and is currently supporting 12 different chains all combined together to form a total bridge volume of $5.33 billion.
The synapse protocol developed its own native token, SYN with multiple uses. The token holders can utilise it to form community governance votes through SnapseDAO. The Liquidity providers also receive parentage of profit paid out for deposits and can also be used as a subsidy to pay for the expended network gas.
2. MULTICHAIN
Also known as Anyswap, Multi is a cross-chain router protocol that was developed with an aim to be the go-to- router for the web3 ecosystem. The bridge is considered as a top-ranked swap protocol by its total value at $8.95 locked currently. The huge number of networks supported by this protocol is the reason behind its high TVL. Multichain currently provides access to 30 different chains on its network.
The chain has a total value of $53.15 billion since its launch and a $19.08 billion transacted in the last 30 days alone, according to the multichain data itself. The multichain protocol currently has 485,399 users, summing to nearly 2.256 million transactions. A share of the transaction fee is generated by the pool in question for customers who have deposited tokens into one of the multichain supported pools. The multichain protocol has its own native token – MULTI which is used to vote and participate in the multichain ecosystem governance, along with a circulation supply of more than 18.64 million tokens out of the 100 million available on the protocol.
3. CELER cBRIDGE
Considered as one of the most prevalent cross-chain protocols out there, celery cBridge is a multi-chain network that provides low-cost value and rapid value transfers among 19 different networks. The protocol is the subsector of the large celer ecosystem (CELR) employing its token for operation and as a reward for liquidity providers. Along with the LP’s token reward, a percentage of the transaction fee is also generated through liquidity pool users for bridging funds between chains.
Coming to celer’s total value, the recent data from Bridge analytics states that the total value of locked funds in the pool-based bridge contact along with the locked funds of the canonical token bridge is at $240.93 currently. There are a total of 89,897 interacted addresses on the protocol since its beginning and have summed up a total of $2.842 billion transactional volume.
SUMMARY:
The advancement and growth of the DeFi sector has certainly led to the increased popularity and more comprehensive acceptance of cross-chain bridges. When compared to traditional exchanges, blockchain protocols offer interoperability, mutual integration of applications to support blockchains, investors, as well as business owners.
