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Developer activity on the Binance Smart Chain (BSC) has been growing at a rapid pace. So much so that it has been giving Ethereum (ETH) its toughest competition yet. Notably, Binance recently introduced a $1 billion growth fund in order to give the BSC ecosystem a significant boost.
However, application developers may still be interested in tapping into the client base and features of other blockchain or distributed ledger technology (DLT) networks. That’s why cross-chain bridges and interoperability solutions are needed. These protocols will be able to support BSC and may help BSC-powered initiatives to effectively scale to other blockchains with ease.
Although the decentralized finance (DeFi) space is still in its early stages of development, it has become obvious to many industry participants that this emerging financial system offers arguably better lending, borrowing, and staking services, especially when compared to the outdated legacy financial system.
DeFi is appealing to a wide range of users because it eliminates costly third-parties from financial transactions. With the help of automated market makers (AMMs), liquidity pools, programmable smart contracts and other innovative features, almost anyone in the world can transact in a permissionless manner. Having this ability is revolutionary and highly disruptive because we need not depend on centralized platforms like PayPal to complete transactions.
We are free to transact with just about anyone, which is a movement that has given rise to new concepts like non-fungible tokens (NFTs). These digital collectibles have been launched on BSC, Ethereum, and many other blockchains. However, the challenge right now is to create interoperability and bridging protocols that would allow a wide range of digital assets with different formats to be transacted across multiple blockchains.
Enabling the Decentralized Transfer of Assets Across Multiple Blockchains
One promising project, known as deBridge, aims to serve as a cross-chain interoperability and liquidity transfer protocol that aims to enable truly decentralized transfers between all blockchain or DLT networks.
As explained by its developers, deBridge is a cross-chain interoperability protocol that allows the decentralized transfer of assets between blockchains. The cross-chain intercommunication of deBridge smart contracts is supported by a network of independent Oracles/validators who have been elected by deBridge governance.
As noted by its development team, which has recently introduced an improved Testnet 2.0, the deBridge protocol is an infrastructure platform and hooking service for cross-chain composability of smart contracts and cross-chain swaps. It also aims to support the bridging of any arbitrary asset and data and the bridging of NFTs.
As mentioned on the project’s official website, deBridge will aim to serve as the decentralized standard for cross-chain interoperability and liquidity transfers. With this solution, it will be possible to scale up your protocol, bridge arbitrary assets, and create new types of cross-chain interoperability apps right on top of a robust and decentralized infrastructure.
At present, the deBridge team has been working on bridges for Arbitrum, Binance Smart Chain (BSC), Ethereum (ETH), HECO, and Polygon (POL).
According to the deBridge team, the DeFi space will need a robust set of cross-chain interoperability solutions. They need to allow users to pass any arbitrary information or transaction data so that it may be executed on the target blockchain. It should also be possible to carry out cross-chain calls between smart contracts, and create a new generation of cross-chain protocols and apps. Although this hasn’t been possible in the past, the deBridge team is focused on making this vision a reality.
Unified Standard, Single UI for Cross-Chain Transfers
They aim to offer a unified standard for cross-chain transfers. They intend to create protocols that remove the requirement of looking for a specific bridge for every blockchain or DLT network. As noted by its developers, deBridge will provide a unified standard where cross-chain transactions and swaps between any blockchain network may be performed via a single user interface (UI).
According to its development team, deBridge is decentralized and insured “by design.” They’ve explained that slashing and delegated staking mechanics ensure that deBridge validators are financially accountable or responsible for fault-tolerance validation as well as the relaying of cross-chain transfers.
Users need not bear the risk of their assets being stuck, because such delays could put validators’ collateral at risk of slashing. As explained by its creators, deBridge allows users to scale up their protocol or they may choose to build on top of deBridge itself. The team has also noted that interconnected components of their protocol enables the exchange of arbitrary details for smart contracts between multiple chains.
With deBridge, it’s also possible to get access to cross-chain liquidity. As noted by its development team, liquidity fragmentation will become “a problem of the past.” With deBridge, the liquidity in blockchains is “at arm’s length,” the protocol’s developers claim, while noting that any smart contracts and users are able to interact with your protocol directly from other chains.
Other features include the ability to integrate easily with existing apps. As mentioned on its website, the integration of deBridge into existing apps allows for a new level of user experience (UX). That’s because users need not manually switch between different networks in their wallets because the transaction gets signed in one blockchain and automatically completed by keepers on another chain.
Cross-Chain Interoperability for NFTs, Metaverses
In addition to these features, deBridge offers cross-chain interoperability for NFTs and metaverses. It’s possible to bridge your NFTs between different chains. You may purchase or sell your game assets at various NFT marketplaces directly from game interfaces.
Additionally, you can make assets interoperable between Metaverses, build new cross-chain apps and features for NFTs and crypto-assets.
BSC, Ethereum May Be Dominant, but Rest of DeFi Is Catching Up
Although Binance Smart Chain (BSC) and Ethereum have captured a considerable share of the smart contract and decentralized application (dApp) development ecosystem, they are not alone in this transformative movement towards the Web 3.0 standard. Innovative protocols like Polygon, Solana, Cardano, among many others are making meaningful contributions towards a decentralized and permissionless future.
In this decade, we shall witness the mainstream adoption of crypto, DeFi, NFTs, and Metaverses. However, no single platform, including BSC or Ethereum, will be able to completely dominate the markets. The future of finance will involve numerous transactions worth trillions of dollars and robust, scalable bridging and interoperability solutions like deBridge will be part of the critical digital infrastructure of tomorrow.