Cross-chain bridges have the potential not only to bring multiple blockchains to users, but also to revolutionize the NFT and DeFi markets as a whole.
The ETH<>SOL token bridge supported by Wormhole is one example, of how popular chains are now interacting with each other. In addition, another network joined the club recently: the Binance Smart Chain. [BSC].
A growing club
In a post, Wormhole Network – which supports the bridging of assets through Ethereum, Solana, and now BSC – gave its view of the Binance Smart Chain.
The press release said,
“Over the past year, BSC has experienced insane growth as Ethereum users have been barred from yield farming and NFT trading opportunities due to the associated high gas fees.”
Cross-chain bridges come with powerful possibilities for users taking part in DeFi, the exchange of tokens, or NFT trades. In addition, such bridges can put networks in competition with each other. They also signal the approach of Web 3.
Wormhole’s statistics for the ETH/SOL bridge give a glimpse of how much users can accomplish, thanks to cross-chain bridges. On October 1, the interoperability protocol announcement that there was over $ 200 million in total value locked [TVL]. What’s more, over 100 NFTs had already used the bridge since 22 September.
Binance Smart Chain vs Ethereum
A look at the active network addresses on Binance Smart Chain and Ethereum clearly shows why users are excited.
On 11 October, the number of active Ethereum addresses was 498,893.
By contrast, the number of active Binance Smart Chain addresses was 1,202,020. A stark difference, indeed.
But keep in mind …
Cross-chain bridges appear to be an exciting solution to the looming issue of interoperability in the crypto industry. However, the ETH/SOL/BSC bridges might not be endgame. Security risks exist when transferring assets between chains. On top of that, transaction fees and congestion levels can be high.
For now, however, users will be eagerly watching NFTs, tokens, and more as they enter or exit the BSC ecosystem.
