Do you know that it is possible to transfer a token from a blockchain to a different blockchain protocol? It is possible!
The process to transfer the token is called blockchain bridging. It helps to transfer different assets into a different blockchain protocol.
For example, Bitcoin (BTC) and Ethereum (ETH) have different blockchain protocols. By bridging, Bitcoin appears in the Ethereum protocol with smart contracts running it in the background.
Before we go even further, you can read more about blockchain here.
The function of blockchain bridging is not limited to token alone. It has other capabilities as well. It enables the exchanges of data between two or more blockchain protocols. The data can be smart contracts, off-chain information, credentials, and much more.
It also helps in transaction fees, speed, and, Decentralized Application (Dapp) interactions. Moreover, bridging is not limited to a specific type of blockchain, be it centralized or decentralized.
Behind the Bridge
It is easier to understand if bridging is the same as transferring one asset to a different protocol. However, that is not the case. As usual, here in Techcryption, we want to share it as simply as possible.
Believe it or not, there are different ways to enable blockchain bridging. Plus, the bridging function is expandable depending on the blockchain capability and flexibility.
In a typical bridging process, network validators and smart contracts act as gatekeepers between two blockchain protocols. On top of that, both blockchains have to lock, mint, and burn the equivalent amount of assets. Network validators or participants of the bridge will receive incentives. Such a process happen between Wanchain and Ethereum.
Other than that, a trusted custodian can act as a bridge. The custodian will release a wrapped token into the desired blockchain by having the equivalent amount of assets.
Meanwhile, in the Polkadot blockchain, bridges can connect two different blockchains like BTC and ETH. It is possible by using their parachain.
There are blockchain protocols that focus on bridging functions. It allows the protocol to connect and interact with multiple blockchains at the same time. Nevertheless, bridging capability is still developing in line with the fast growth of blockchain usages around the globe.