Advantages and disadvantages of crosschain bridges
We all use Crosschain Bridges, because they allow different independent blockchains to connect to each other, and we get to safely transfer our assets from one network to another.
These bridges came about as a solution to the problem of interoperability — the inability to work together. Typically, blockchains cannot interoperate with each other because they operate according to different rules. More often than not, this can lead to high transaction costs and congestion.
But cross-network bridges work as neutral zones, so users can easily switch between them. Because users have access to multiple blockchains over the same network, the cryptographic experience is seamless and very profitable.
However, such bridges are not a panacea — let’s delve deeper into this topic and identify the advantages and disadvantages of crosschain technology.
Advantages of crosschain bridges
Compatibility
Crosschain bridges address interoperability issues in the blockchain ecosystem: allowing different networks to share and use data with each other, and to move unique types of digital assets between their respective blockchains.
In doing so, network interoperability enables the creation of powerful new products and services that simultaneously take advantage of multiple networks.
Interconnectivity
This feature allows DeFi users to transfer assets or data from a blockchain with little or no dApp (such as the Bitcoin network) to another with a more robust ecosystem (such as Ethereum, Cardano and others).
Scalability
Blockchain bridges are designed to handle large volumes of transactions, which provides greater scalability.
Better user experience
The bridge provides access to alternative platforms, allowing users to use features that may be lacking in the original blockchain. What’s more, DeFi users can make and receive micro-transfers faster with cross-network bridges without paying high transaction fees.
However, crosschain bridges are not perfect and there are some drawbacks: hacks and centralization.
Non-castodial bridges are open to attackers. Blockchain bridges are increasingly being targeted for theft, which has long haunted the crypto sector. More than $1 billion was stolen from bridges in 2022, according to Elliptic, a London-based blockchain analytics company.
Another problem is single points of failure/centralization. Chainalysis believes that bridges are an attractive target because they often represent a central storage point for the funds that support the bridge assets in the receiving blockchain. Regardless of how those funds are stored — in a smart contract or in a centralized custodian — that storage point becomes the target. The centralization of validators has made security compromise much easier.
Interchain bridges are fundamental to creating an interoperable, open and decentralized blockchain space. They offer numerous advantages that allow users to transfer their assets between multiple networks quickly and efficiently.
That said, there are projects that are learning from mistakes and striving to make cross-chain swaps faster, cheaper, safer and more convenient.
For example, consider the Meson project, which is a protocol that builds on top of known cross-chain bridges, focusing on stabelcoins, offering a very convenient and affordable exchange experience for this type of asset.
Meson product design from day one is aimed at making the user experience as easy and convenient as possible. Your transactions can usually be completed in a matter of minutes, because many optimizations have been involved in the development process to minimize transaction costs for users when exchanging stabelcoins between chains. There is also no temporary holding of any intermediate stabelcoins during a transaction, using HTLC technology with logical and cryptographic principles that either the transaction is fully executed or not executed at all.
