On the surface, a cross-chain bridge in the context of crypto is used for transactions. According to Satoshi, financial intermediation is the cause behind increasing fees around crypto cross-chain transactions (the emphasis was on gas). To solve this, cross-chain bridges were made. Yet, these can do so much more than just be bridges for crypto transactions. But first, let’s see what this term actually means.
What is a cross-chain bridge?
For crypto enthusiasts, it’s common knowledge that most cryptocurrencies work on the blockchain model. A cross-chain bridge allows two completely separate blocks to transfer tokens. The two blocks may be completely alien to each other in structure or functionality. Yet, the cross-chain bridge will ensure interoperability between the two blocks.
The Gist of the Matter
People want their money. They want to transfer their money to Binance or any other asset, but the processes around this whole act are quite complex. Apart from mediation, the carbon footprint and the hassle come together to become a headache. Cross-chain bridges are a solution to all that.
According to Defi TVL, the cross-chain bridges are performing well. That means the users have probably have had a load taken off their minds. Of course, there are many hassles that are still associated with crypto trading and transactions. However, various forces are working in tandem to eliminate those hassles. Cross-transaction bridges are a part of that innovative spirit that guides the whole crypto world. It’s also big news for decentralized finance in general