What is the significance of the development of cross-chain bridges?

The wealth effect brought by the airdrop has begun to make the market pay attention to the original cross-chain bridge section of the public chain, and the cross-chain protocol itself is an important tool on the chain at present. At present, in addition to the old blockchain network Ethereum, new-generation public chains such as Solana have begun to enter the market, and Aribitrum, the second-layer expansion chain of Ethereum, is also rising. The coexistence of multiple chains is the current market pattern. Therefore, the relationship between chains The interoperability of assets also makes the cross-chain protocol a rigid demand for users on the chain.

There are currently two main ways for assets to cross-chain: 1. Cross-chain aggregation application Swap - it builds a cross-chain transaction pool by aggregating the liquidity of assets on different chains, and users can complete asset exchanges on different chains in the pool. 2. Cross-chain bridge - provide a bridge channel between two different public chains, and host the original assets on this bridge. At the same time, one chain can obtain the asset transaction status on the other through the oracle function, according to 1: 1 scale mapped to another chain. The effect of the cross-chain bridge is to allow the two chains to circulate the same asset, and the cross-over assets are mapped from the original assets.

Huobi Institute believes that the cross-chain bridge plays an important role in asset extradition, and can also solve the problem of insufficient performance of the underlying public chain. The ideal cross-chain bridge can not only satisfy asset information interaction, but also has extremely high security guarantees, and can ensure that the cross-chain environment is highly transparent and tamper-free, and is compatible with protocols, applications, and transactions of various public chains with higher performance wait.

Huobi Institute also reminded that although cross-chain protocols provide users with the convenience of on-chain interaction, security is still a concern. Due to the increase in the demand for transactions on the chain, the cross-chain funds of users hosted by the cross-chain bridge are also increasing. Therefore, it has become the favorite target of hackers, and the cross-chain bridge has become a high incidence of security incidents. Within two months of July and August this year, there were three security incidents in which cross-chain applications were hacked.

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