![]() Conduct fast, low-cost transactions of tokens hosted on non-scalable blockchains.Deploy digital assets on one blockchain to dApps on another.This system is indeed effective, however, the siloed nature of blockchain is somewhat stunting the growth and progress of the DeFi ecosystem, locking DeFi participants into a single, enclosed network when actually, given its permissionless and disintermediated functionalities, it should allow users to gain access to a wider array of opportunities.Īt a time when the DeFi Lego-like composability of decentralised Applications (dApps) is changing the face of financial infrastructures as we have always known them, it’s more important than ever for independent blockchains to communicate and share data with one another.Ĭross-Chain Bridges Connect Two Separate Blockchain InfrastructuresĬross-chain bridges allow for the transfer of assets, tokens, data or ever smart contract instructions from one chain to another and between completely independent platforms, enabling users to: In fact, to maintain the consensus that underpins the security and accuracy of a shared ledger, only miners who meticulously follow the rules of each network are allowed to verify and write transactions to the blockchain. There is, of course, good reason for this as one of the most vital elements of blockchain technology resides in its ability to preserve network security. However, despite on-chain data being fully transparent, a blockchain’s infrastructure is essentially designed to be a self-contained, siloed ecosystem. Public blockchains, such as Bitcoin and Ethereum for instance, are built as digital ledgers that are open-source, transparent and visible to all. Despite Blockchain’s Disruptive Technology, Its Ecosystem Remains Rather Siloed And Enclosed
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