Place/Date: - June 16th, 2022 at 1:18 pm UTC · 3 min read
As the number of blockchain networks is steadily increasing, and dozens of different blockchains already exist (including Bitcoin, Ethereum, Binance Smart Chain, Avalanche, Polygon, Solana to name a few), crypto users often face an urgent necessity for efficient interoperability of these technologies. Seamless interactions among different distributed ledgers are enabled by innovative solutions called DeFi cross-chain bridges.
A DeFi cross-chain bridge is software that facilitates the transfer of information, cryptocurrencies and non-fungible tokens (NFTs) from one blockchain system to another. Without such bridges, a transaction, that is sent from one blockchain, can simply not be verified and completed by the recipient blockchain because the two chains are not interoperable. This can ultimately translate into the loss of the assets sent.
With fiat currency, retail users and organizations have many established ways to send value in the real world, which creates a globally accessible and interoperable financial payment network. These systems consist of financial institutions, banks, and credit/debit cards that process exchange transactions. In the blockchain realm, cross-chain bridges serve the same purpose.
Although it is possible to send different assets across blockchains without specialized DeFi cross-chain bridges, such an operation can be extremely expensive and time-consuming. Moreover, cross-chain transactions without appropriate bridges present lucrative targets for hackers who take advantage of the inadequate interoperability between the chains to steal users’ funds.
Without a cross-chain bridge, users must first convert their crypto tokens to fiat money on one blockchain, which is often not possible without paying a fee. Then the user needs to spend the fiat currency on the second blockchain to obtain the desired crypto coin, which also incurs additional fees and time waste.
This is where DeFi cross-chain bridges come in handy. Such tools allow users to send their crypto assets across heterogeneous blockchain environments without first needing to convert their crypto assets to fiat money.
DeFi.Watch is happy to introduce a new, much-anticipated service – DeFi cross-chain bridges. This nifty tool allows you to get a list of the best blockchain bridges in a matter of one click. You only need to select the blockchain from which you want to transfer, as well as the destination blockchain in order to send your assets across chains.
DeFi.Watch only supports proven bridges that have been vetted, audited and time tested, making sure our users will never come across scammers when transacting cross-chain. The platform currently supports 80 different bridges, but the number of supported cross-chain bridges will be increased soon. Search filters are also going to be improved in the nearest perspective, making it possible to search not only by blockchains, but by specific assets as well.
In the project’s DeFi Blog, you can find tons of valuable information concerning the world of decentralized finance, blockchain technology, crypto assets, NFTs, and more. Before you buy any crypto, make sure you are aware of the potential DeFi Risks & DeFi Risk Management to avoid bad surprises.
DeFi.Watch is a DeFi aggregator and portfolio tracking tool. It allows you to search and compare thousands of existing DeFi projects across different blockchains and decentralized exchanges. DeFi.Watch also helps you track the performance of your crypto portfolio across all DeFi projects where you participate, using your MetaMask wallet.