You Must Construct Additional Bridges!

in LeoFinance2 months ago (edited)

Can and will bridges take the power back from centralized exchanges? That is the question. But first we must construct additional bridges!


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As it stands massive amounts of value are transferred between individual users through centralized exchanges. As the landscape has unfolded we've seen companies build and refine exchanges; capturing users and value while taking a cut of all the action.

Most "first generation blockchains" have been built in a siloed fashion where businesses, projects, and their users value is essentially trapped on that blockchain. There are really only a few options for decentralized value transfer with relatively good liquidity, and while some do exist it's the larger centralized exchanges that currently dominant the space.

With Binance doing $22B daily volume nothing else even compares.

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The Rise of Cross-Chain Bridges

Times are changing and tech is catching up in an effort to solve this problem. The solution is to build additional bridges. There's an ongoing shift towards composability within DeFi and cross-chain interoperability amongst legit blockchain businesses and projects.

Do you even bridge?

Maybe you've never used a bridge to move coins or NFT's from one blockchain to another but you will eventually, that's a given.

Any blockchain or blockchain project for that matter that's built to last will invest in building bridges between chains where they don't already exist.

Recent examples of this include LEO Bridge that allow users to transfer value between ERC20 to BEP20 (Ethereum to Binance Smart Chain) which is where Cubdefi lives.

Another example related to HIVE is the work that @deathwing is doing to bring us both a @bscbridge and a @polygonbridge, you can read his most recent update here. These bridges will allow value transfer between HIVE, BNB, and MATIC. I think this kind of work should be funded through a proposal but I don't believe it is, none the less I'm sure a witness vote is always appreciated for this work.

These bridges are decentralized and permissionless, this is tech we want to be supporting.

This is the future of the internet of blockchains, and it's also my hope that slowly but surely we can shift some of this early power away from centralized exchanges. One of the keys to this adoption is of course through simple and frictionless UX but we're not quite there yet. That said we're getting closer and closer every day.

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As an example of improved UX check out this polygon NFT bridge, yeah an NFT bridge, good things are coming to Polygon!

What is a Cross-Chain Bridge?

Blockchain and their assets are siloed, and difficult to move between blockchains without going through a centralized exchange (middle man). A bridge can do this in a decentralized and permissionless manner through the use of smart contracts.

This interoperability allows the transfer of tokens, data, and even smart-contract instructions between independent platforms. https://decrypt.co

When transferring assets out from one chain the assets are locked up using a smart contract, with equal amounts of these assets being issued into the users wallet on the destination chain. If value is transferred back the new assets are burned and the smart contract releases previously locked up assets.

Must construct additional bridges!

I want to see bridges everywhere! Thankfully for those that use the HIVE blockchain we'll have the ability to bridge between a few different blockchains! This ability to facilitate a flow of value is a massive benefit to all it's users, and to the internet of blockchains as a whole.

Ciao for now,

@agr8buzz


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I was about to say that I never used a bridge. But sending Leo to BSC is kind of a bridge too, right?

Anyway, I think we all are going to use bridges as we see much more tokens integrating with each other in DeFi.

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yeah totally, native LEO to BLEO is the bridge to binance. I think for now we'll want our favourite projects bridging to ETH, BSC, MATIC and then into the future whatever other blockchains emerge victorious. Those 3 are all EVM compatible chains, so we see how influential ETH is.. not going away, until someone does smart contracts better i guess.

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For me it looks like RUNE (Thorchain) may play a role in bridging between native assets. At the moment bridging is not the focus but, with RUNE paired directly to the native tokens it is very easy to swap between the assets.

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Absolutely, Thorchain is purpose built for cross chain swaps!

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I would love a LEO/HIVE to WAX bridge.

I know that you can transfer NFT's between Splinterlands (based on the HIVE blockchain) to the WAX blockchain (and vice versa) but it would be fantastic if you could do the same with crypto without massive fees (which is what a bridge is all about - right?)

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hey good call! So splinterlands already built one for NFT's, you're right! too bad it's not open source as far as I know. This type of work I think would be a good candidate for a DHF proposal..

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I was curious and tried out the NFT bridge. Very easy to transfer a card from Splinterlands to Atomichub. I listed it for c. 20% more than the card was worth, and it sold on Atomichub (the prices there are higher than on Splinterlands direct).

The only issue would be getting the crypto back out of wax and into dec again without high transaction fees. Otherwise there's a market for buying cards on splinterlands and re-selling on Atomichub for a higher price than you would be able to on peakmonsters. It's the transaction fees that don't make it worthwhile (unless you are intending to move your crypto from DEC to WAX long term!)

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Ah very cool, transferred an NFT to wax! So there's a bridge for NFT's but not for the coins HIVE <> WAX which is too bad. I'm hopeful someone builds this!

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Maybe you've never used a bridge to move coins or NFT's from one blockchain to another but you will eventually, that's a given.

This was the part that I liked the most, because in my case, a few months ago I didn't even care what happened or didn't happen with BSC, NFT and defi, but now it has become part of my life.

That's why I think these initiatives that deathwing makes are very important and not only for Hive, but for the whole cryptoverse.

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Exactly, everything that has value should be connected to everything else that has value. Let the value flow!

For sure maybe 6 months ago before CUB many here on HIVE had never accessed BSC and nor any DeFi, certainly not AMM's on BSC. Now they're part of regular digital life on the chain, same thing will happen with bridges imo, for coins and NFT's.

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These bridges need to be based in countries that say FU to us kyc.

Cool thing is it's built on smart contracts so the code lives in many places on blockchain nodes, it's decentralized, permissionless, theoretically anyone can use it anywhere.

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Right. But if it is ran by a known entity from the wrong country it can be targeted and shut down by usgov.

if it's run by a known entity then its not decentralized. I'm talking about decentralized and permisionless bridging, it can't be shut down.

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