BSC To ETH Bridge: Catalysing Blockchain Interoperability
With the inception blockchain in 2008 via Bitcoin’s whitepaper release, people got to know about the innovation of a decentralised ecosystem. Shortly after the inception, different blockchain protocols with unique consensus algorithms surfaced which also increased the adoption of crypto. Now that most of the blockchain protocols are autonomous ecosystems with independent economies, cross-chain communication becomes an unavoidable need.
Although public blockchain networks have decent on-chain data transparency, you will still find it difficult to function holistically on these blockchain networks. This happens because of blockchain’s siloed capabilities. Different blockchain protocols like the Ethereum network or Binance Smart Chain have unique features which at times people might want to combine based on their requirements. Now, to use the features of two different blockchain protocols functioning on two different algorithms and trade-offs, blockchain bridges came into existence.
Let’s understand the mechanism of blockchain bridges with the help of an example. After reading this article you will be able to comprehend how bridging works like in the case of the BSC to ETH bridge. You will cover the following aspects of blockchain bridging and BSC to ETH bridge:
- Understanding blockchain bridges
- Types of blockchain bridges
- Features of cross-chain bridge
- Pros and cons of blockchain bridges
- BSC to ETH bridge
- How does Systango help you achieve interoperability?
Understanding Blockchain Bridges
To make it simple for you, blockchain bridges function in the same way a real-life bridge works. It connects two independent chains or blockchain protocols and catalyses the cross-chain communication of transferring valuable assets and data between them. You can select any two blockchains whose features you like the most as per your utility.
Then, by implementing a blockchain bridge between the chains, you can seamlessly share smart contract execution rules, exchange tokens, exchange transaction data and other relevant network information. This happens as the blockchains are not limited to their point of origin after implementing a cross-chain bridge.
For a pragmatic understanding of blockchain bridges, let us imagine two people: the first one as A and the second one as B. Now, A wants to send some amount in ETH to B, who can only accept it in BSC. This is when A and B will implement a blockchain bridge for their crypto exchange.
Blockchain bridge provides interoperability, leveraging which A and B can then exchange tokens easily. Interoperability is a sign of how easily digital assets and data stored on different blockchain protocols can be exchanged.
Although every blockchain has some cons, for instance, Ethereum has scalability issues for which it needs ZK-rollups and layer1 scaling solutions. Avalanche and Solana L1s are designed with distinct architectures that prioritize increased throughput but sacrifice decentralization.
Each blockchain has its unique set of rules and consensus mechanisms and evolves within an isolated ecosystem. Consequently, there is no inherent interoperability or seamless transfer of tokens across different blockchains. To enable the exchange of data and tokens between blockchains, bridges are utilized to establish connections between them.
Now that you have a fair understanding of how a blockchain bridge works, let’s move ahead and look at all kinds of blockchain bridges in the following section.
Types Of Blockchain Bridges
For you to comprehend the concept of blockchain bridging completely, it is important to know about all its types. Follow the different types of blockchain bridges mentioned below:
Uni & Bidirectional Bridges
Unidirectional bridges help in the one-way transfer of assets and bidirectional bridges help facilitate the free exchange of assets between two blockchain protocols. For instance, Wrapped Bitcoin(WBTC) is regulated via a unidirectional bridge. You use your Bitcoin to create WBTC that are pegged to the value of the opposite person’s currency during currency transfer. But, remember that it is a unidirectional transaction, therefore it cannot happen the other way around.
A federated blockchain bridge facilitates communication and interoperability between two or more blockchain networks that employ different consensus algorithms. It is managed by a group of trusted bodies known as the federation. Federated bridges use smart contracts that are deployed on both blockchain networks. These smart contracts allow for the transfer of assets from the user’s wallet to a federated multi-signature wallet controlled by the bridge, and then the issuance of equivalent assets to the user’s wallet on the other blockchain.
With a federated blockchain bridge, users can take advantage of the unique features and benefits of each blockchain network, such as the security of Bitcoin and the smart contract capabilities of Ethereum. For example, you can use your Bitcoins to purchase tokens on the Ethereum network without the need for a centralized exchange.
Sidechain bridges help regulate assets between two independent blockchain networks without involving any intermediaries. It does so by connecting the blockchain networks via a sidechain like Bitcoin’s RootStock, which is again an independent blockchain but functions parallel to the main blockchain networks.
To make it simple for you, the Bitcoin-Ethereum bridge is a sidechain bridge that helps transfer Bitcoin and other digital assets from Bitcoin to the Ethereum network. This process can also be reversed, i.e. token transfer from Ethereum to the Bitcoin network. This sort of bridge can be easily implemented via a sidechain called WBTC. WBTC, as explained earlier, is a token on the Ethereum network that is backed up by Bitcoin.
To define it in a simple way, a cross-chain bridge helps trade assets between two independent blockchain protocols. Now, do not confuse the cross-chain bridge with the sidechain bridge as in this case the bridge does not require any separate sidechain to facilitate the trading. Instead, a cross-chain bridge uses smart contracts and other direct methods to facilitate asset trading between two independent blockchain networks.
Let’s understand this with an example, the Cosmos network. It uses an ecosystem of interchain communication or ICC to regulate asset trading between two separate blockchain networks. Then, another reliable example of a cross-chain bridge is the Polkadot network. Polkadot uses an ecosystem of relay chains to facilitate cross-chain trading. The network employs a shared security model, which helps the users to leverage from entire chain’s security along with the independent chains’ securities.
Features Of A Cross-Chain Bridge
Blockchain bridges play a crucial role in the decentralized space as it lets you step into multi-chain token trade, power robust bridging innovations and offer token transfers & access to new networks at comparatively low cost. Cross-chain bridge does all these things with help of a fundamental set of features as the following:
Lock And Mint
While you understand how the bridging functions, don’t confuse it with direct token transfers. A blockchain bridge does not transfer a token directly. It involves a two-step process, wherein in the first step tokens are frozen on their origin blockchain and in the next step, an equivalent amount of tokens are minted on the receiving blockchain. The bridge then burns the equivalent amount of tokens to fetch its actual value and resultantly you get to redeem the tokens.
When you use a blockchain bridge for instance a BSC to ETH bridge, it will link Binance Smart Chain and Ethereum blockchain for you via a sidechain. This sidechain connects the parent blockchain and its child network. Since both, the main and the subordinate chain exist on different networks, they need a sidechain bridge to connect and transfer data.
Trust-based blockchain bridging solutions have a high demand even after their trusted custodian inclusion in the bridging solution. If you use a trust-based bridge, your funds will be managed and controlled by the custodians. This way you can easily transfer tokens and leverage the high transaction flexibility of multiple blockchain networks.
Using cross-chain collaterals, you can move digital assets between blockchains of equivalent value at a very low cost. Before this, borrowing assets was not possible from anywhere else but from only the source blockchains. Based on current blockchain developments and innovations in blockchain bridging, you can unlock the full potential of cross-chain borrowing via blockchain bridges which need extra liquidity.
Blockchain bridges validate, regulate and authorize quick micro transactions at feasible and nominal gas fees.
One of the most important blockchain bridge features is its robust management. Blockchain bridge validators function as network operators. They issue and validate corresponding tokens in regard to the token they receive from the other blockchain network via a customized smart contract. This way, you can leverage robust transaction management in all your cross-chain transfers.
Pros And Cons Of Blockchain Bridges
Blockchain bridges open up the scope of communication between two independent blockchain networks. These bridges will help you facilitate cross-chain transfers and also offers seamless connectivity between the parent and the child network. With the increased adoption of blockchain bridges, the scope of interoperability in the decentralised space also increases. This also encourages the developers to efficiently deploy dApps on various DeFi platforms.
Advantages & Disadvantages Of Blockchain Bridges
On that note, you must note that every coin has two sides. The same is the case for blockchain bridges. It has some fundamental pros and cons as listed below:
- Flexibility in cross-chain transfers
- Efficient and fast asset swaps, decentralized asset trading at low gas fees
- Offers high scalability and reduces network congestion
- Helps leverage the benefits of different blockchains in one exchange process.
Now you must also take note of the cons to leverage the full potential of blockchain bridges in an efficient way. Some of the major cons of blockchain bridges are:
- Cyber attacks and hacking loopholes due to smart contract code bugs.
- Hypothetical stealing in the case of trusted blockchain bridges.
- Loopholes related to transaction processing time on a single chain which in turn affects the interoperability of the crypto trading.
- Alignment issues among both independent blockchain networks due to trust and security factors.
With both, the pros and cons of blockchain bridges, by now you must have a got clear picture of its ecosystem. Now let’s move ahead and comprehend the mechanism of a blockchain bridge with the help of an example like bridging between BSC to ETH in the following section.
BSC To ETH Bridge
To understand the mechanism of the BSC to ETH bridge you must be thorough with its semantic components like the Solidity programming language, and all the Ethereum & Binance Smart Chain frontend and backend frameworks.
There are blockchains that employ APIs to start the token transfers, therefore, being extremely vulnerable to fraudulent transactions. Thus, it is important to remove all the APIs from the ecosystem of a decentralized bridge so that is safe and offers robust transaction security. You can follow the step-wise guide given below to initiate a decentralized BSC to ETH bridge.
Step 1: Set Up A Smart Contract
You can begin by setting up a smart contract for the core of the blockchain bridge.
Step 2: One Chain Bridge Deployment
After setting up the smart contract, you need to deploy the Binance bridge once you are done with developing and deploying the code for the bridge base.
Step 3: Second Chain Bridge Deployment
Once you have successfully deployed the Binance bridge, move ahead and deploy the ETH bridge
Step 4: Mint And Burn IToken
After you have deployed both network bridges, start minting and burning the IToken.
Step 5: Migration Programming
Initiate and complete the programming of migrations.
Step 6: Write Smart Contracts
Now, start writing the smart contract codes for the token base of the bridging ecosystem.
Step 7: BSC Token Deployment
Deploy all the tokens on the BSC network.
Step 8: ETH Token Deployment
Deploy all the tokens on the ETH network.
Step 9: Migration Function
Now you have to program your migration function.
Step 10: Bridge Deployment
Initiate and complete the BSC to ETH bridge.
Step 11: Decentralized Bridge
Deploy the decentralized after deploying the BSC to ETH bridge.
Step 12: Program API
Program the bridging APIs to regulate the event transfers.
Step 13: Key Deployment
After completing the API programming, initiate the private function key deployment on Ethereum bridge.
Step 14: Token Balance Function
In the end you will program the token balance function to process the bridging.
How Does Systango Help You Achieve Interoperability?
Interoperability has the power to speed up decentralised trading. Therefore, we as a blockchain development company promote adoption of various bridging solutions to increase interoperability in all the blockchain-based upcoming innovations. To support the adoption of decentralized bridges, we have a wide range of services listed below:
- Bridge Smart Contract Development
- Interoperability Protocol Development
- Oracle Development
- DEX Platform Development
- Bridging Ecosystem Development
- Smart Contract Auditing
Summing It Up
To create a new era of an open, decentralized web (Web 3.0), it is essential to foster a collaborative and interoperable approach among networks in the blockchain industry. Blockchain bridges offer a revolutionary solution to overcome the fragmentation of blockchain networks, thus promoting innovation, user adoption, and technological advancement. By facilitating the integration of different blockchain protocols, bridges can lead us toward the next phase of a decentralized web, where centralized intermediaries that lack user-centricity become obsolete.
Are you keen to implement innovative blockchain bridges into your decentralized projects? Connect with our blockchain development experts for end-to-end interoperability solutions!