The Near Future Blockchain Dapps - Blockchain Bridge

By mummyrio | SIDECHAINNEWS | 4 Apr 2021


Cryptocurrency is decentralized. There are thousands cryptocurrency. They have their own networks. You can not send bitcoin to ethereum network. It is impossible to be mass used if the decentralized community will only use their own network. Cryptocurrency networks are like an islands. To connect the islands needs bridge.

 

What is blockchain bridge?

A blockchain bridge is a connection that allows the transfer of tokens and/or arbitrary data from one chain to another. Both chains can have different protocols, rules and governance models, but the bridge provides a compatible way to interoperate securely on both sides.

https://coinmarketcap.com/alexandria/article/what-are-blockchain-bridges

In the future blockchain bridge will not only as the mediator to two networks but also will be multiple networks. So that, having btc, ethereum, dash, and other coins will not be difficult to cash out into fiat or to exchange. Blockchain bridge will also benefit to cut the fee of transaction. Defi platform should apply blockchain bridge to enlarge market. 

Golden Gate Bridge, San Francisco, California

https://pixabay.com/photos/golden-gate-bridge-san-francisco-388917/

Crypto money with blockchain bridge

When crypto money will be united in a bridge, that is the time of cryptocurrency mass adoption. Central Bank Digital Currency (CBDC) should have a blockchain bridge. This is the area where banking industry enter crypto sphere. With blockchain bridge banks still plays important roles in cryptomoney. There are two types of blockchain bridge.  They are centralized and decentralized. When a bank plays in a centralized blockchain bridge, the bank will be a trusted institution that connect crypto users to the real world. It is time for mass to accept crypto payment. Banks still can earn profit from small fee of transaction from world wide users.

Regulation matters

All banks involvement in creating blockchain bridge is back to the regulation. How regulation should be friendly to cryptocurrency industries. However, like or dislike authorities should change or create new regulation in cryptocurrency that is more friendly. Without regulation, blockchain bridge will be the next cryptocurrency projects. Banks still left behind if they do not take action to the innovation. Decentralized communities do not need any approvals to create new projects.

 

 

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mummyrio
mummyrio

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