The blockchain industry is innovating at a rapid pace and at the moment, different chains are interacting with each other. With DeFi’s expansion, these assets are not limited only to Solana, or the Terra ecosystem, but it has become essential that there are solutions that allow these assets to move from branch to branch. other.
Across various layer 1 chains, programmers started developing cross-chain bridges in order to break interoperability limitations and connect more users across, with the potential shift to WEB 3 in the future. With that in mind, these cross bridges could already make a difference.
Daily Bridge Usage increases for Solana, Luna
According to the recent spencernoon report, the increasing need for infrastructure to mediate from one blockchain to another may have led to the increased usage of cross-chain bridges amongst certain blockchains.
Ronin Bridge from Axie Infinity (an Ethereum-based side chain) has led in terms of transactions. In terms of unique addresses, the price seemed to have a minimal impact on daily traffic.
While Ronin had the greatest activity, two assets flourished over the past week, Solana and Luna, also saw strong activity on cross bridges. Data suggested increasing engagement on the Terra network and whale activity on bridges significantly increased with the price spike. The report added,
“The same relationship between news interest and interactive traffic / addresses applied to Solana’s Sollet Bridge following a massive wave of public interest in Solana. “
Are Cross-Bridges sustainable and a one-stop solution?
Not yet, not even close. The major problem with any decentralized form of transactional approach remains the lack of security standards. On cross-chain bridges, when funds are transferred from one chain to another, it is imperative to establish the native designation of the asset, in terms of code validation, and collateral protection.
Another major headache is transaction fees, as large transfers of funds between channels can be costly. Cross-chain bridges haven’t completed solved the issue due to the variance in congestion levels between two independent chains at one given time. More flexibility is needed in terms of transfer of funds, as the efficiency of liquidity will play a major role.
Future is ‘Crossed-Transferred’?
Web 3 is going to be the next form of data consumption and sharing, and a multiple-chain infrastructure is inevitable. With DeFi’s explosive growth, it’s time before major asset classes such as Ethereum and Polygon also introduce cross-chain bridges.
As a matter of fact, Umbrella Network recently was launched on Ethereum, with the objective of setting up cross-chain transactions between dominant smart contract platforms, that include Ethereum and BSC. However, major improvements are needed on cross-chain bridges before they can become a home solution for different blockchains.
