When it comes to developing new technology, compatibility tends to be a common issue. A company strives to create a unique product, but rarely do they think compatibility with different systems through.
There are plenty of examples: Android and IOS, the variety of mobile phones chargers in the 2000s, and blockchains, of course.
As a case of the compatibility issue solution let’s take the introduction of the at “@” sign to an e-mail address. In the 90s the users of different email services couldn’t send e-mails unless they entered the sign.
A versatile solution for interoperability between blockchains is yet to be found.
One of the viable options is to build bridges. It’s nothing like actual bridges. Assets can’t physically get transferred between networks. But there is a solution using locking/unlocking and minting/burning mechanisms.
Let’s have a closer look at how a bridge works. A user wants to transfer some tokens from a blockchain A to a blockchain B. For them, it seems the same as transferring assets between banks. Blockchains do the following operations
Not that hard, right? At the same time, it’s not easy to make a bridge operational though. It requires implementing smart contracts. Also, there is a but here: generally, a smart contract can work within its “home” blockchain.
In this regard, the specialized blockchain of the second layer aka L2 looks promising.
Transactions within different layers occur independently. It is also called off-chain. L2 allows getting information (including transactional) from other blockchains as well as external analytical resources through oracles.
Well, the main advantage of L2 is that L1 doesn’t undergo structural changes which make life significantly easier for developers. That way, L1 provides security while L2 serves as a “middleman” and is responsible for the capacity.
We already have some examples of functioning bridges. Binance Smart Chain, for instance, is essentially an Ethereum clone with lower fees. It is interoperable with its “parent”, which makes it possible to use any erc-20 tokens in BSC ecosystem. Meanwhile, Polygon Bridge is a great example of L2 use for Ethereum.
Additionally, there are some “deeper” projects. Polkadot’s goal is to transfer tokens as well as other information between blockchains. Besides, its ecosystem enables creating your own blockchain through the use of Substrate framework and leveraging the benefits of the mainchain.
As you might have noticed, there are various approaches to cross-chain implementation.
Time will tell if the aforementioned ways become standard or entirely new technology emerges. The current situation indicates that blockchain interoperability is necessary for the further development of the industry in general.
NFTs, or non-fungible tokens, are digital assets that are unique and irreplaceable. NFTs can represent anything from digital art and collectibles to in-game items and property deeds. Since NFTs are stored on a blockchain, they can be bought, sold, or traded, like any other crypto asset. They can also be transferred across different blockchain platforms. This is possible thanks to NFT cross chain bridges, which are protocols that allow NFTs to be moved from one blockchain to another. This enables NFT owners to take advantage of the different features and communities that exist on different blockchains.
In order to use a cross chain bridge, a user needs to have an NFT on the source chain first. Once the NFT is deposited into the bridge, it will be locked up on the source chain and an equivalent NFT will be created on the destination chain. The user can then trade or sell the NFT on the destination chain. When the NFT is redeemed on the destination chain, it will be destroyed, and the original NFT will be unlocked on the source chain.
This is especially useful for NFTs that are hosted on Ethereum, which despite being popular, has some flaws. For example, an NFT holder could move their asset from Ethereum to Binance Smart Chain in order to enjoy lower transaction fees.
Using NFT cross chain bridges provides a way for users to trade NFTs between different blockchain platforms, allowing a more decentralized and open ecosystem for digital art and collectibles.
NFTs (non-fungible tokens) are a hot new trend in the cryptocurrency world, and for a good reason. They offer a way to represent unique digital assets that can be traded on decentralized exchanges. Yet, there are some growing pains to deal with. When it comes to NFT crosschain bridges, these issues include security, fakes, trust, and liquidity.
While NFT crosschain bridges do have some issues to work on, it’s important to remember that all new technologies face similar challenges before they become mainstream. With enough effort and innovation, NFTs and NFT crosschain bridges will become revolutionary.