Cross Chain Bridges And How It Connects Different Blockchain Network

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INTRODUCTION

As the name implies cross chain bridges can be defined as tools which facilitates the cooperation and connection of two or more different blockchain networks by serving as a kind of bridge, it is a very important and essential tool in the world and ecosystem of blockchain network.

Cross chain bridges basically facilitate and process the following transactions; transferring of cryptocurrency holdings, assets, resources, data and smart contract, seeing as they facilitate the sharing and integration of resources between multiple networks we can conclude that they are helping in an efficient way build better and stronger networks.

In this post of mine, I am going to be explaining and discussing some of the significant and important ways in which cross chain bridges is facilitating the growth and advancement of interoperability of blockchain networks.

• BY ENHANCING LIQUIDITY

Liquidity basically can be defined as the ease with which a cryptocurrency or asset can be converted into cash without having any significant impact or effect whatsoever on the price or market value of that particular cryptocurrency or asset.

One way in which the cross chain bridge is connecting blockchain networks is by ensuring and facilitating a significant increase in the liquidity experienced in the realm or ecosystem of blockchain networks, we all know the importance of liquidity to the cryptocurrency market.

Liquidity in general is affected or the level of liquidity in the network can be said to be determined by a number of factors, it can be the nature of the tokens blockchain or lack of efficiency in its operations to mention a few, the way cross chain bridges increase liquidity is by enabling the transfer of assets across different chains hence ensuring operational efficiency.

• IMPLEMENTING INTEROPERABLE SMART CONTRACT

Smart contracts, smart contracts can simply be defined as those types of contracts that are smart, I'm just kidding, smart contracts are self fulfilling or self executing contracts they are basically programmed to execute a particular action when the pre stated or pre programmed terms and conditions are met.

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Most, if not all of blockchain networks and applications already have and implement smart contracts in the their functions and operations therefore, if cross chain bridges is to connect blockchain networks we will need to start by connecting the smart contracts of the different networks or by using interoperable smart contract.

It is important that we use interoperable smart contracts because the smart contracts of the different blockchain networks play very essential roles and help in executing majority of the functions of the networks so it is essential to employ interoperable smart contracts because that is the only way to ensure connectivity of the networks without affecting the efficiency of their operations.

• IMPROVING SCALABILITY

Scalability, this can be simply defined as the measure of operational efficiency of a network, it refers to the amount of transactions in which a network can take on, process and execute without having any adverse effect on its functions or operational speed and efficiency.

Many of blockchain networks are facing or suffering from lack of high scalability, and its effects are clearly seen as they include; increased cost of processing transactions, congestion or delay in transaction processing time and as a result affecting and reducing the efficiency of the blockchain network.

However, the cross chain bridges provides solution to this issue by basically improving or ensuring connection and interoperability between blockchain networks, transactions or loads can be shared and distributed among different or multiple blockchains hence ensuring that each network has just enough load to maintain and improve its scalability.

• BY FACILITATING CROSSCHAIN GOVERNANCE

Governance which is another important part or aspect of blockchain networks, governance can simply be defined as the method and processes involved in the decision making process of practically everything that concerns the growth, security, and affairs of a blockchain network.

Cross chain Bridges ensures connectivity and interoperability in blockchain network by basically finding a way or means for facilitating cross chain governments, by doing this we can be assured of a broader and more inclusive participation in the different blockchain networks.

Additionally, a cross chain governance is one that employs the use of certain voting mechanisms and governance tokens data able to operate seamlessly among different blockchain networks, hence ensuring the
creation of a single governing body for all interoperable networks.

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CONCLUSION

I would like to say a very big thank to everyone who made the effort to read and go through this post which I have made, and I hope that you have been able to learn a few things for example, like some of the significant ways in which cross chain bridges is connecting blockchain networks.

Some of these significant ways, the one in which I took my time to discuss and explain in this post, are as follows; by facilitating cross chain governance, by implementing interoperable smart contracts, improving scalability and enhancing liquidity.