12 August 2020
Blockchain Technology holds a significant role in the field of digitalization and technology. The system has brought a beneficial change in the network, however, like any other technology, we have the benefits and the challenges. One of the few challenges that blockchain technology faces is its interoperability.
Blockchain interoperability is when different blockchain networks without any constraint can share information. But with blockchain technology, when a product is built on a particular network of the blockchain, the developer or the user cannot leverage for the same product by also using a different blockchain platform.
For instance, the Bitcoin Blockchain will have no knowledge of the process, running, and system of the other Blockchain like Ethereum. So something that lacks with Bitcoin blockchain cannot be filled in by Ethereum blockchain, as the developer or the user will lose the benefits of Bitcoin blockchain for its product.
What Is Blockchain Bridge?
Blockchain Bridge can be defined as a process wherein two different ecosystems of blockchain can connect in order to transfer data and tokens.
The challenge stated above can be solved with Blockchain Bridge. The bridge can help the developer or the user to transfer the token from one blockchain platform to another blockchain platform that would leverage the benefits from both the blockchain platforms.
How Does The Blockchain Bridge Works?
Blockchain Bridges utilizes mint-and-burn protocol enabling constant token supply across all blockchain platforms. For instance, when a token leaves from abc blockchain, it is either burned or locked while an equivalent token is minted on the other chosen xyz blockchain. So when the token moves back to its original abc blockchain network, the other “twin” token is either burned or locked.
Just like blockchain, bridges are also operated through decentralization’s spectrum and it is outlined in two subjective bridges categories - Federated Bridge and Trustless Bridge.
- Federated Bridge - In this category, a set of standard criteria is laid out to qualify and enabling to be a part of the federation bridge, just like the permissioned or private blockchain.
- Trustless Bridge - In this category, the process works with a decentralized network of agents. Anyone can be a part of this network while the agents are provided with incentives for the correct validation of the transaction of the bridge.
Many companies and projects are adopting the process of Blockchain Bridge, such a project is Wanchain. It is stated to be one of the earliest projects that entered the space of interoperability and introduced the T-Bridge framework. While RSK - a Bitcoin blockchain platform for second-layer smart contract launched its RSK token Bridge.
Blockchain Bridge can help the blockchain industry gain mass adoption leading to the evolution and growth of the industry.