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Blockchain technology has evolved a lot since its invention and many new projects have emerged in the blockchain space with various designs and intended functionality. This situation has brought different blockchain networks with different consensus mechanisms, supported technologies, pros & cons. Bridges were created to enable users to benefit from more than one blockchain by connecting them.
A blockchain bridge is a link that allows tokens and data to be transferred from one chain to another. Note that blockchains may have different protocols, rules, and governance models. However, the bridges are designed to provide a safe working environment on both sides.
Binance Bridge is a central bridge service that provides inter-blockchain liquidity access for decentralized applications serving on Binance Smart Chain, Binance Chain, Ethereum, and Tron networks.
Let’s explain with an example.
Person X wants to buy a token with his 200 USDT. However, let’s say the 200 USDT he owns is on the Ethereum network and the Token he wants to buy is on the BSC network. In this case, X person will either send his USDTs to a central exchange containing the token he wants to buy and perform the transaction from there, or X will transfer the USDTs he owns to the BSC network via a bridge and perform the transaction.
Multiple platforms with swapping between DEXs act as bridges. These include AnySwap, cBridge, RenBridge, Wormhole, Synapse. Search as ”Cross-Chain Protocols” on Google if you want to find out more crypto bridges. Learn more about decentralized apps and DeFi if you are interested.
To use a bridge and swap between chains to buy / sell / send coins,
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