Blockchain bridge

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Blockchain bridge is a link that provides connection and interaction between two blockchains.

Bridges, by connecting two blockchain networks, help decentralized applications (dApps) to utilize the advantages of both systems. For example, a dApp hosted on Ethereum and linked to the Decimal blockchain can utilize the functionality of Ethereum smart contracts 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. Token transfer does not happen literally; instead, when a token needs to be transferred from one blockchain to another, it is burned on the first one, and an equivalent token is minted on the other.

How blockchain bridges work

When it comes to public and private blockchains, blockchain bridges are divided into two categories — Trustless and Federated.

A Trustless bridge operates more or less like a public blockchain network where anyone can join the platform without permission. Similar to Ethereum miners, users are incentivized to confirm transactions.

Similar to a private blockchain, a Federated bridge requires users to meet specific criteria and requirements set by the federation to be part of the bridge.

Advantages of blockchain bridges

The emergence of decentralized finance can significantly bridge the gap between cryptocurrency and the traditional financial system. Moreover, according to experts, DeFi solutions are capable of addressing the integration of cryptocurrency into the financial world even faster than payment industry leaders such as PayPal or Coinbase.

Blockchain bridges help reduce network congestion by distributing traffic to other less congested blockchains, thereby addressing scalability issues.

Instant payment processing is also a valuable application of blockchain bridges.

Ultimately, teams do not need to limit themselves to one blockchain if they want to enhance the performance of one community with the capabilities of another.


Existing bridges have been functioning in their current form for a relatively short period, so they are still in the adoption stage.

Considering the relative immaturity of this emerging field, it is inevitable that some bridge implementations face challenges.

However, it seems inevitable that with the current focus on scalability and interoperability, bridges will become an integral part of the future blockchain landscape.

See also