A blockchain bridge is a link that transfers tokens and data from one chain to another. In other words, this system provides data transfer between two completely independent blockchains. Both chains can have different protocols, rules and governance models. But the bridge provides a cohesive way to work together securely on both sides. For example, DeFi applications will benefit from increased liquidity, cross-community reach, increased user base and expansion of available resources. Blockchain bridge allows various networks such as Bitcoin and Ethereum or the main chain (parent chain) and its sidechain (child chain) to work together.
This interoperability can include the transfer of tokens, data and even wise contract instructions between independent platforms, allowing users to:
- Transfer of digital assets hosted on one blockchain to another,
- Perform fast, low-cost transactions of tokens hosted on less scalable chains,
- Running DApps across multiple platforms.
A simple explanation for how blockchain bridges work can be that if you want to transfer some of your Bitcoin (BTC) to Ethereum (ETH), the blockchain bridge will keep your coin and form equivalents in ETH for you to use. Instead of directly involving the crypto, the amount of BTC you want to transfer gets locked in a smart contract while you get access to an equal amount of ETH. When you want to convert back to BTC, the ETH you had or whatever’s left of it will get burned and an equal amount of BTC goes back to your wallet.
Blockchain bridges fall into two distinct categories: more centralized (trusted) bridges that rely on the management of a single, powerful entity, and trustless bridges that are inherently decentralized. Trusted bridges are based on a central authority or operational governing body. They have trust assumptions concerning the custody of funds and the security of the bridge. Users mostly rely on the bridge operator’s reputation. Meanwhile, the purpose of the decentralized (trustless) blockchain bridges is to make users feel safer when transferring their coins via smart contracts and algorithms. These solutions operate just like an actual blockchain with individual networks pitching in to validate transactions. Using a trustless bridge will ensure the security of your coins. However, this freelance-based service can be a liability when incidents happen since they’re only paid to process your request and not to fix them.
Why Do We Need Blockchain Bridges?
In certain periods, blockchain networks can slow down for various reasons to increase transaction fees on purpose. For example, let’s say that a network jam occurred on the Ethereum network, as in the CryptoKitties crisis, so a DApp using the Ethereum network can be highly affected by this situation. At such a time, with the help of blockchain bridges, tokens can be sent to a different chain, and remain in the safe zone until the problem is resolved. The most important point here is that despite this process, the tokens will continue to be ERC-20 based and will not lose their properties in these cross chains.
With the help of blockchain bridges, the congestion in the Ethereum network can be removed, the other blockchains are flooded by Ethereum users, and the use of the network called adoption increases.
Blockchain bridges allow users to access the benefits of different network technologies without having to choose between platforms. This not only helps take the pressure off Ethereum, the most popular DeFi network but also supports innovation in other ecosystems.
The interoperability of blockchains, including the main chain and sidechain, gives users access to each without compromising the benefits of the main chain. Bridges designed for high transaction volumes provide greater scalability without forcing developers and users to forego the liquidity and network impact of the original chains. This is particularly important as congestion issues persisted in Ethereum before the full release of Ethereum 2.0.
The omLink system enables omchain (OMC) and different blockchain services to work together and acts as an essential bridge. https://app.omchain.io/bridge. The omlink bridge prevails over its competitors with its advanced developments. Moreover, it is aimed to be the fastest blockchain bridge in the world.
If you want to use DApps in different blockchains with your OMCs, the first thing you need to do is to enclose your OMCs using the omlink bridge. omlink works the same as the other blockchain bridges. For example, if you want to use an application on Binance Smart Chain (BSC), you must first enclose your OMCs on omlink. Right now, omlink works in conjunction with Ethereum, Binance Smart Chain, Avalanche Network and omchain Mainnet networks. In the future, omLink, which is very open to development and innovation, will allow interoperability with other different blockchains.