To own native BTC, you would have to bridge your assets from Ethereum to Bitcoin using a bridge. Alternatively, you might own BTC and want to use https://xcritical.com/ it in Ethereum DeFi protocols. This would require bridging the other way, from BTC to WBTC which can then be used as an asset on Ethereum.
Now here goes the list of DeFi bridges that you can use to bridge assets across chain which is swap assets, earn yield & perform variety of DeFi activities on the network of your choice. So some of the bridges listed here only connects L1 and L2 that is connecting parent and child chain. This is typically a side chain bridge mostly connecting Ethereum mainnet to the Layer 2 allowing the transfer of tokens. XDAI Bridge is a token bridge providing multi-chain compatibility and interoperability. It connects the xDai chain to the Ethereum mainnet, allowing easy transfer of DAI into xDAI and xDAI back to DAI. Once you are ready NEAR Rainbow bridge allows you to freely migrate assets between the two chains.
Self check-in is similar to a trustless model as it removes the operator’s role and uses technology for its operations. Users always remain in control of their data and don’t have to trust a third party with their private information. Manual checkpoints are similar to a trusted model as it depends upon a third party, i.e., the officials, for its operations.
While bridges unlock innovation for the blockchain ecosystem, they also pose serious risks if teams cut corners with research & development. The Poly Network hack has demonstrated the potential economic magnitude of vulnerabilities & attacks, and I expect this to get worse before it gets better. While it is a highly fragmented and competitive landscape for bridge builders, teams should remain disciplined in prioritizing security over time-to-market.
However it is important to keep in mind that the features and the underlying technology behind these protocols are still in the early beta stage. You need to conduct your own research and you should understand the DeFi risksbefore using these platforms. Binance bridge is a bridge solution by Binance which users can use to swap BEP20 tokens from BSC to ERC20 on Ethereumand ERC20 to BEP20. One recent hack was Solana’s Wormhole bridge, where 120k wETH ($325 million USD) was stolen during the hack.
After years of research & development, we are finally in a multi-chain market structure. There are over 100 active public blockchains, many of which have their own unique applications, users, geographies, security models, and design trade-offs. Despite what individual communities believe, the reality is that the universe tends towards entropy, and the number of these networks will likely continue to increase into the future. Using this tool you can interchange any assets across both the blockchains. It works by locking ERC20 tokens in an Ethereum smart contract and minting equivalent amount of corresponding SPL token on the Solana blockchain.
Blockchain Bridges: Building Networks Of Cryptonetworks
StakerDAO is the cross chain asset factory enabling the vibrant future of decentralized finance. They have developed the StakerBridge – An open source protocol and a bi-directional bridge that allows users to move assets from one chain to another. First of all most of the bridges listed here all function the same.
There is usually a group of validators that monitor a “mailbox” address on the source chain and, upon consensus, perform an action on the destination chain. An asset transfer is typically done by locking up the asset in the mailbox and minting the equivalent amount of that asset on the destination chain. These are often bonded validators with a separate token as a security model. This type of market structure necessitates the need for interoperability between these distinct networks. Many developers have realized this, and the last year has seen an explosion in blockchain bridges that attempt to unify an increasingly fragmented landscape.
Evo DeFi is another cross chain token bridge that is simple and easy to use. You can use this to swap tokens between ETH, BSC, Polygon, Fantom, HECO, Avalanche, Arbitrum as well as Solana. Currently It is a BSC to Ethereum cross-chain bridge that allows you to transfer native $UMB tokens across Binance Smart Chain and Ethereum. As of now Rainbow bridge only connects between Ethereum and NEAR network.
Its long term vision is to allow users to bridge any assets between any blockchain. So soon you can transfer any token between any blockchain for use in decentralized applications. Blockchain bridges work just like the bridges we know in the physical world. Just as a physical bridge connects two physical locations, a blockchain bridge connects two blockchain ecosystems. Bridges facilitate communication between blockchains through the transfer of information and assets.
This comes at the cost of security, however, since users are, by definition, relying on the security of the bridge rather than the source or destination chains. While most external validators today are trusted models, some are collateralized, of which a subset is used to insure end-users. Furthermore, if the collateral asset is different from the insured asset, there is also a dependency on an oracle price feed, so the security of the bridge could degrade to the security of the oracle. If not trusted, these bridges are also the least capital efficient because they need to scale collateral proportional with the economic throughput they are facilitating. Bridges in DeFi are very much useful as it provides an easy way for users to bridge cross-chain assets between blockchains.
To transfer from Ethereum and BSC you need to connect your Metamask wallet. If your source chain is Solana then connect your Solana SPL token wallet such as Sollet or Solflare. It offers same smart contract capability as of Ethereum but the fees on BSC are much cheaper and the transaction time is faster. For example if you want to swap tokens from BSC to Ethereum then ensure the Metamask network is selected to BSC. Likewise if you want to swap assets from Avalanche to BSC then connect your Metamask to the Avalanche network.
For wrapping that is to transfer from ETH to XTZ you need Metamask. For unwrapping that is to transfer back from XTZ to ETH network you need to have extensions such as Temple Wallet, Spire or a mobile AirGap Wallet. Other than Binance Smart Chain network and Ethereum network it also supports Solana, TRX and OMNI network.
- An asset transfer is typically done by locking up the asset in the mailbox and minting the equivalent amount of that asset on the destination chain.
- Many bridging solutions adopt models between these two extremes with varying degrees of trustlessness.
- This is akin to a peer-to-peer network where each node acts as a “router” that holds an “inventory” of assets of both the source and destination chain.
- To get started you need Metamask wallet connected to Ethereum account ready.
- Furthermore, the best bridges will be the most secure, interconnected, fast, capital-efficient, cost-effective, and censorship-resistant.
- Other than protocols with bridging solutions there are also exchanges both CEX and DEX providing cross chain swap functionality which you can use to swap assets between a myriad of networks.
Actors monitor events on the source chain and generate cryptographic inclusion proofs about past events that were recorded on that chain. There is a requirement for some actor to “relay” the block headers and proofs. While it is possible for a user to “self-relay” transactions, there does exist a liveness assumption that relayers will continuously forward data.
Tezos Wrap Protocol Bridge
Configure your Metamask to Arbitrum network so you can switch tokens between L1 and L2 anytime. Coin Guides is a fast-growing cryptocurrency publication that helps users to understand the Blockchain Technology and Crypto Currency. We publish latest crypto news, coin mining guides, wallet setups, reviews, token guides, trading tips, online security and various other aspects of cryptocurrencies. Using deBridge you can bridge any arbitrary assets, scale up your protocol, and build new types of cross-chain interoperability applications on top of a truly decentralized infrastructure. Moonbeam uses Chainsafe’s Chain Bridge – It is a multi-directional bridge that can interact with multiple networks like Ethereum, EVM chains and substrate based chains like Moonbeam. Solana wormhole token bridge is a portal that allows you to seamlessly transfer tokenized assets across Ethereum and Solana network.
However, unless your funds are already on an exchange, it would involve multiple steps, and you’d likely be better off using a bridge. Token network fund with the thesis of embedding cryptoeconomic incentives into everything; transactions, computation, storage, prediction, power. If you are using Cosmos network then you can connect to Ethereum via Emeris. To use Emeris all you have to do is install the Keplr browser extension and connect the Keplr wallet. Smart BCH is a sidechain of Bitcoin Cash that is compatible with Ethereum’s EVM and Web3 API. Users of Bitcoin Cash can now now wrap BCH and use it for decentralized finance purpose. In future Umbrella Bridge has plans to enable cross-chain integration with Avalanche, Cardano, Polygon and Solana.
The trade-off is with statefulness because while they can pass around calldata, they are limited in functionality. Light clients & relays are also strong with statefulness because header relay systems could pass around any kind of data. They are also strong with security because they do not require additional trust assumptions, although there is a liveness assumption because a relayer is still required to transmit the information.
The Rainbow Bridge is a trustless permission-less protocol for connecting blockchains. It is currently in Beta and using Rainbow Bridge users can bridge assets from Ethereum to NEAR and back again. It also features a multi chain bridge which connects mostly all EVM based blockchains. Using Ren Protocol you can bridge assets across any blockchain using smart contracts. It provides access to inter-blockchain liquidity for all decentralized applications.
Own Native Crypto Assets
If you know any other DeFi cross chain bridges which is not listed here then make a mention in the comments below. Moonbeam project is an Ethereum compatible smart contract parachain on Polkadot network. A wrapped token will be created and the value will be bridged between both the chains.
Celo Optics Bridge
Once the swap is complete you can interact and facilitate transaction on other blockchains. Some on the other hand are specifically designed to connect only the substrate and EVM based chains What is a Blockchain Bridge which you can use to bridge assets between two blockchains. Below you can find the list of bridges that cryptocurrency and DeFi participants can use to perform cross chain activities.
Let’s say you have ETH on Ethereum Mainnet but want cheaper transaction fees to explore different dapps. By bridging your ETH from the Mainnet to an Ethereum L2 rollup, you can enjoy lower transaction fees.
These are also the most capital-efficient bridges because they do not require any capital lockup whatsoever. For each chain pair, developers must deploy a new light client smart contract on both the source and destination chain, which is somewhere between O and O complexity . There are also significant speed drawbacks in optimistic models that rely on fraud proofs, which could increase latency up to 4 hours. This is akin to a peer-to-peer network where each node acts as a “router” that holds an “inventory” of assets of both the source and destination chain. These networks usually leverage the security of the underlying blockchain; through the use of locking and dispute mechanisms, users are guaranteed that routers cannot run away with user funds. Because of this, liquidity networks like Connext are likely a safer option for users who are transferring large amounts of value.
To get started you need Metamask wallet connected to Ethereum account ready. Also before bridging assets be sure to setup a NEAR wallet where you can securely store and stake your NEAR tokens. Using this wrap protocol bridge by Tezos XTZ users have the ability to bridge with Ethereum network. You can wrap and transfer ERC20 and ERC721 tokens from Ethereum to Tezos and from Tezos to Ethereum blockchain in a decentralized way. This cross chain bridge is safe, fast and the most secure way to bring cross-chain assets to Binance chains.
You can basically bridge any any ERC-20 token onto NEAR – A developer friendly, low cost and infinitely scalable platform for decentralized applications. The goal is to bring more liquidity onto the network by enabling token holders to transfer their assets across the bridge to be used in decentralized applications in variety of circumstances. Furthermore, the best bridges will be the most secure, interconnected, fast, capital-efficient, cost-effective, and censorship-resistant. These are the properties that need to be maximized if we want to realize the vision of an “internet of blockchains”. SushiSwap also recently launched a cross-chain bridge that enables you to interact and facilitate transactions with other DeFi protocols. Arbitrum One Bridge is a side chain L1/L2 token bridge that connects Ethereum L1 and Arbitrum L2.
It allows users to access variety of decentralized finance applications across various networks. You can use these bridges not only to perform cross chain token swaps. Once the assets are transferred you can use them to stake, earn yield and perform variety of DeFi activities on the network of your choice. DeBridge is a decentralized standard for cross-chain interoperability and liquidity transfers. DeBridge is a cross chain bridge that uses Oracles to broadcast transactions across the chain.