Blockchain Bridges: Examined, Explored, and Explained

What is a blockchain bridge?

Wikipedia defines a bridge as something that,

‘is constructed for the purpose of providing passage over the obstacle, which is usually something that is otherwise difficult or impossible to cross.’

Since inception blockchains have been mainly developed in silos and lacked the ability to integrate with other networks. This resulted in dapps being operable only on one network, limiting their potential for broader adoption.

Blockchain bridges aim to liberate blockchains from the shackles of their network of origin and allow them to adapt to other playgrounds, allowing these applications to be more decentralized. The blockchain bridge links two or more blockchains and permits users to send cryptocurrency from one chain to the other.

Current Flaws

Blockchain’s Achilles heel has always been the inability to interact with networks other than their network of origin. This tragic flaw restricts the refinement and pertinence of the technology and places limitations around further innovation. It also hampers economic growth and free trade.

Trust vs Trustless based:

At the moment, users can either make use of trust-based or trustless blockchain bridges, each of which has its own perks (and flaws).

The biggest problem that plagues blockchain bridges is centralization. To convert tokens, users need to “give up control” and convert them to something like a wrapped token. In other words: it’s like getting on a bridge with your car but getting off on a bicycle.

Trust-based bridges are the best option for fast and economical transfers, whereas trustless bridges are more decentralized. The drawback of going trustless is that the nature of trustless bridges is freelance-based, so resolving an issue could be challenging should one arise.

Lack of collaboration:

Lack of collaboration between blockchains stumps the growth of each ecosystem and leaves builders needing to build similar initiatives on different chains (like stable coins for example).

Fees & wait times:

Like in web2, if it’s slow and expensive, users are less inclined to use the product or service. The most prominent example here is Ethereum which was widely adopted by builders but high fees and long wait times between transactions create barriers of use.

Why is it so important? Interoperability = inclusiveness

Just like Flori, blockchain bridges speak to the belief that there is power in many. Evolving centralized blockchains which are operable only in their own networks through blockchain bridges will open the world of inclusivity which will lead to the idea that the Crypto Economy is a space where everyone can prosper.

Popular ecosystems are aware of this shift and are developing various solutions that can facilitate cross-chain communication to bridge the gap between the scattered chains.

Take Celo, for example. Celo addresses these flaws at its core, providing a great base for native building as well as connectivity to other chains. Let’s take a look at what the Celo community is doing to “bridge the gap.”

Celo

Celo believes in the theory of change which is a framework that describes how short-term actions lead to long-term social impact. A mobile-first blockchain that makes decentralized financial (DeFi) tools and services accessible to anyone with a mobile phone. With inclusivity top of mind, Celo provides users with the solutions to overcome barriers of exclusivity, centralized networks and the idea that the Crypto Economy is inaccessible to everyone.

Celo is a great place to start when choosing a blockchain to build on with interoperability in mind.

• Built as EVM compatible tokens: to ensure ease of use and keeping up with web3 standards, Celo understands that it is pivotable to remain relevant in this ever-evolving environment of the Crypto Economy world and already offers building EVM compatible tokens.
• Low fees: Celo boasts super low transaction fees making it a more accessible option for everyone.
• Live bridges: Celo already offers a variety of blockchain bridges that are EVM compatible with low transaction fees. Examples of live bridges on Celo are Optics, AllBridge and Moss. Take a look at the bridge section available here to get a better idea of how they can be used to bridge assets from Ethereum, Polygon, and Solana to Celo.
• The human bridge: The notion that one blockchain will prevail is no longer valid nor realistic. We must move towards inclusivity and interchangeability and bridges are the vessels towards reaching the goal of presenting the Crypto Community as a possibility for everyone to gain prosperity and not only to an elite few.

We encourage anyone that shares the vision of a more prosperous financial system to see what everyone is up to and get involved in the Celo community.

Will you be joining us on this exciting journey? www.floriventures.com

#blockchain #fintech #DeFi #celo #crypto