Hello community!
One of these days, we are waiting for an update to the main network of DecimalChain, in which we will receive two blockchain bridges, so let's take a closer look at what it is.
Until recently, each type of blockchain was created as a separate independent ecosystem, and developers were more concerned with competing with each other than working on things like interoperability.
With the rise in popularity of decentralized finance in 2020, the issue of cryptocurrency compatibility is becoming especially urgent.
The DeFi industry itself was conceived as a unified financial ecosystem, whose products could be compatible with each other. Therefore, in order to solve the problem of blockchain incompatibility, blockchain bridges were created.
What are blockchain bridges?
A blockchain bridge is the link that provides communication and interaction between two blockchains.
Blockchain bridges by linking two blockchain networks help applications take advantage of both systems. For example, a dApp hosted on Ethereum and linked to the DecimalChain blockchain can leverage the Ethereum smart contract functionality as well as the scalability of DecimalChain.
Thanks to blockchain bridges, any data, information and tokens can be transferred between two blockchain platforms.
Blockchain bridges are governed by the mint-and-burn protocol. The transfer of tokens is not literal: when a token is needed to transfer from one blockchain to another, it is burned on the first, and the equivalent token is minted on the other.
The development of blockchain bridges is still in its infancy and it can take a significant amount of time to develop into a full-fledged application suitable even for banks.
The DecimalChain development team is one of the few people working on this technology.
Given its useful and unique aspect of connecting multiple blockchain ecosystems, blockchain bridges will play an important role in the blockchain universe of the future.
