What Is Cross-Chain Bridges in Nigeria

8 Best Cross-Chain Solutions in Nigeria

👉 With each step closer, the world moves towards fully distributed decision-making, which means fewer people will have to depend on institutionalized financial systems.

👉 To reap the benefits of leveraging many chains in your project, you cannot avoid using bridges, even if doing so may appear challenging.

👉 Stories of DeFi’s (decentralized finance) enormous success over the years have been relentlessly drummed into the public through the daily headlines, leading tech journals, social media platforms, and crypto price charts.

👉 In the last decade, what began as an electronic peer-to-peer system has grown into a full-fledged financial system that offers a better financial infrastructure for people everywhere.

👉 Numerous distinct blockchain ecosystems have emerged in recent years, each making important contributions to the industry.

👉 However, for understandable reasons, each of these ecosystems operates independently from the rest of the business world. Although the blockchains’ compartmentalization improves user privacy, they are stuck inside that system.

👉 Scalability, hefty transaction fees, and poor speeds are some issues that have become apparent as more individuals enter the decentralized banking world.

👉 The lack of interoperability across chains threatens the overall viability of DeFi since users want a system that allows them to transfer assets between networks to overcome difficulties on one blockchain network. Hence, there is a need for crypto bridges.

XDC Network

👉 Delegated proof-of-stake (XDPoS) is the cornerstone for the XDC Network’s hybrid blockchain operation. The XDC Network’s XDPoS allows for hybrid relay bridges, instant block finality, and compatibility across different blockchains.

👉 In addition, it features a hybrid design that is easy for programmers to work with. Digitalization, tokenization, and lightning-fast trade transactions are provided by the XDC Network, which achieves this by combining a democratic consensus and a superior level of openness.

👉 The XDC Network is a global financial and trading platform. It has created a commercial-grade architecture that is both safe and scalable behind a permission-based security system.

👉 Because of its hybrid design, XDC Network can close the gaps in international commerce and finance. This is useful because it facilitates real-time and immediate settlement in the financial sector via smart contracts.

👉 The XDC01 protocol drives the XDC Network. In addition, the XDC protocol is designed to assist with the smart contracts layer and the AML/KYC layer.

THORChain

👉 The THORChain protocol is a decentralized, cross-chain liquidity solution that facilitates the transfer of assets across different blockchains. With its Cosmos-powered decentralized exchange (DEX), THORChain offers a workable alternative (SDK).

👉 Its AMM-based protocol offers the underlying infrastructure for exchanging cryptocurrency across previously incompatible blockchains.

👉 THORChain is a blockchain platform driven by the RUNE cryptocurrency. Each asset in the platform’s liquidity pools has its own corresponding RUNE token.

👉 Thus, RUNE is the second token that users deposit in the liquidity pool to perform trades against, which increases its usefulness and value on the network. In addition, fees, governance, and security for the THORChain network are paid for using RUNE.

👉 THORChain’s DEX, built with the Cosmos SDK, is one answer to this problem (SDK). Its AMM-based protocol offers the underlying infrastructure for exchanging cryptocurrency between previously incompatible blockchains.

👉 An ecosystem of goods and services supports the cross-chain architecture of THORChain. First multichain decentralized exchange (DEX) solutions like THORSwap utilize the THORChain network as its front end.

👉 With THORSwap, Nigerians can choose any two assets to trade, and the protocol will determine the fees for them depending on how much traffic there is on the network.

Synapse Bridge

👉 Synapse is a “layer 0” decentralized protocol to ease cross-chain interoperability in DeFi. The Synapse Bridge and the Synapse AMM are essential to the protocol’s operation.

👉 Synapse’s interchain connectivity paves the way for the seamless exchange of digital assets across many blockchains, such as Arbitrum, Avalanche, Boba, the Binance Smart Chain, Ethereum, Fantom, Harmony, and Polygon.

👉 Cross-chain stablecoin swaps allow users to trade between different stablecoin assets on the same blockchain easily.

👉 For example, if you have BUSD on Binance Smart Chain and want to buy USDT on Avalanche, you could use the Synapse Bridge to make the exchange.

👉 Multi-party computation validators protect the bridge and respond to events on blockchain networks linked by Synapse, making this cross-chain bridge technology possible. The bridge has a TVL of about $96 million, which is only in its early phases.

Stargate Bridge

👉 Stargate is an open-source, LayerZero-based cross-chain bridge protocol that facilitates native asset transfers across blockchain networks. The inability to transfer native assets from one chain to another is a significant drawback of most existing bridges.

👉 They use a wrapped token, sometimes known as an “intermediate” token, to accomplish the bridge. This method is cumbersome for users and is very inefficient.

👉 Stargate was created so that users may transport native tokens to non-native chains without first having to wrap them.

👉 The system is based on interchain shared liquidity pools that provide instantaneous guarantees. Stargate’s mission is to simplify and standardize cross-chain transactions.

Binance Bridge

👉 The Binance Bridge is yet another famous cross-chain bridge that strives to promote interoperability in the crypto sector. This Ethereum-Binance Smart Chain (BSC) Bridge allows anybody to convert crypto tokens to and from formats compatible with Binance Chain and BSC.

👉 Binance Bridge now supports conversion between ERC-20 tokens and XRP, LINK, ATOM, DOT, XTZ, and ONT, among other network currencies.

👉 Token transfers from native platforms are performed by encapsulating native tokens and translating them into BEP-2 and BEP-20 formats when a bridge user makes such a request.

👉 Following the completion of the conversion, these tokens may be used as native BEP-20 tokens for staking and trading across various protocols inside the BSC ecosystem.

👉 The token conversion procedure is simple; it takes just a few minutes to connect tokens across networks. In addition, the bridge has no transaction costs. Users only pay for fuel on the native and destination chains.

👉 The Bridge interface is available to all users, including those without a Binance account. Subsequently, it is one of the most popular gateways from Ethereum to the Binance Network.

Fantom AnySwap Bridge

👉 The Fantom AnySwap Bridge facilitates two-way cross-chain asset transfers between the Ethereum Network and the Fantom Network, which is compatible with the Ethereum Virtual Machine (EVM).

👉 Holders of ERC-20 tokens may use the Fantom Network’s signature scalability, speed, and low cost in comparison to Ethereum.

👉 AnySwap relies on liquidity pools distributed across several blockchain networks to bridge assets. This infrastructure allows tokens on Ethereum, Avalanche, Polygon, and the Binance Smart Chain to be transferred to Fantom.

👉 With a TVL of more than $2.4 billion and an intuitive UI, the AnySwap Bridge is a favourite among traders.

👉 Although these are the most famous blockchain bridges enabling interoperability in DeFi, additional bridges such as the Cosmos Bridge, Polygon PoS Bridge, and Terra Money Bridge provide novel methods of exchanging tokens and transferring assets between networks.

Portal – Wormhole

👉 Regarding cross-chain bridges, Portal is among the most well-known options. Originally constructed on the Solana Network, this decentralized bridge allows seamless two-way crypto token exchanges between Solana and Ethereum.

👉 Currently, however, there is Portal, a multichain network that links the eight largest blockchains in the DeFi business (representing 88% of the market share): Solana, Ethereum, BSC, Polygon, Terra, Avalanche, and Oasis.

👉 Portal uses specialized validator nodes known as Guardians to ensure that users always have a positive experience while making a cross-chain exchange. Guardians keep an eye on the bridge and double-check any requests made.

👉 To complete a user’s request to move crypto tokens from one blockchain to another, Guardian nodes must first destroy the equivalent number of tokens on the original blockchain.

👉 The same number of tokens is next minted, but this time in a platform-specific wrapped format appropriate for the final chain.

👉 With its user-friendly UI and minimal transaction fees of $0.0001 per transfer, Portal Token Bridge stands out from the competition. The total value of transactions across the span’s lifespan is over $400,000, and its TVL is $3.5 billion.

Avalanche Bridge

👉 Thanks to the Avalanche Bridge, tokens may be transferred easily between the Avalanche and Ethereum networks.

👉 This cross-chain connection works in both directions. In addition, it makes it possible to exchange crypto tokens and NFTs back and forth by using ChainSafe’s ChainBridge.

👉 Nigerians can easily deposit and lock their assets in the ChainBridge Smart Contract to execute a cross-chain exchange and utilize ERC-20 tokens inside Avalanche’s decentralized apps.

👉 Following the receipt of the assets, a proposal is drafted and sent to the Bridge’s Relayers for consideration. It will be up to the Relayers (Protofire, Hashquark, POA Network, Avascan) to evaluate the proposal considering Avalanche’s information and vote on whether to accept it.

👉 After the proposal is accepted, tokens with the same value are created on the Avalanche Network and could be used in several protocols.

👉 With its different voting procedure and TVL of more than $5 billion, Avalanche is one of the most secure crypto bridges for transferring assets.