Despite the growing number and scale of blockchain networks, they remain largely isolated from one another, like islands with their own cultures and economies that cannot share information or value with the external world.
The fragmented nature of today’s blockchain networks contradicts the decentralisation ideal and re-establishes the fragmentation of the current centralised web.
Not only does a lack of connection across blockchain networks hamper decentralisation, but it also affects the technology’s evolution and effectiveness (by putting constraints on innovation, economic growth, and free trade). In general, applications designed for one network only operate on that network, limiting their chances of its widespread adoption.
This is why several projects are tackling this issue by developing “bridges” between networks. As a result, blockchains will become interoperable, allowing apps to leverage each other’s services and strengths.
Also Read: Explained: How To Secure Your Crypto Wallet?
What are blockchain bridges?
A blockchain bridge links two blockchain ecosystems in the same way a real bridge connects two physical locations. Bridges offers connectivity across blockchains by transferring information and assets.
Let’s say you want to move one cryptocurrency from its native network to another network for utility purposes. A bridge between these two blockchains will make such a transaction possible. Otherwise, you will have to sell your coins and buy the other coins native to that blockchain network, or you will have to swap the coins.
Also Read: What Is A Crypto Airdrop? Here’s Everything You Need To Know
What is the goal of blockchain bridges?
All blockchains grow in isolated ecosystems with unique rules and consensus methods. This implies they can’t communicate natively, and tokens can’t move freely across blockchains.
Bridges exist to link blockchains, allowing information and tokens to be transferred between them.
Bridges allow for:
The cross-chain movement of assets and information.
DApps to have access to the strengths of other blockchains, improving their capabilities (as protocols now have more design space for innovation).
Users can gain access to new platforms and reap the benefits of various chains.
Developers from various blockchain ecosystems will collaborate to create new platforms for users.
Also Read: What Is A Block Reward? Here’s Everything You Need To Know