Why Crypto Bridges are so Important?

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Over the past few years, there has been a sharp growth and development of all kinds of networks. Nowadays, there are hundreds of blockchains. Each one is unique in its own way and has its own pros and cons. The cryptocurrency bridges are directly related to this phenomenon.

Why do we need Cryptocurrency Bridges?

All existing networks operate according to their own algorithms and principles. Due to the incompatibility of technical parameters, it is impossible to run the same exchange or decentralized application on different blockchains. It is then needed to make the same service from scratch.

A similar story happens with tokens on different networks. It is impossible to simply transfer a token from one network to another directly via the blockchain. What does the user have to do?

Given the variety of networks, and their functionality, which is suitable for different goals and objectives, it is impossible to always use only one blockchain. There is a constant need to use different cryptocurrencies on different networks. How to make an exchange? The special bridges can help.

Cryptocurrency bridges are services that allow you to transfer coins in the decentralized finance (DeFi) sector. They are the only option for such an exchange. You will not be able to transfer coins to another blockchain on a decentralized exchange. These procedures occur exclusively in the same networks.

How to work with it?

The interface is usually very similar to any DEX exchange:

  • You choose the blockchain and the coin you want to transfer, as well as the one on which you want to receive your asset.
  • Next, connect the wallet and, if necessary, specify the wallet of another blockchain for the receipt of funds.
  • After that, the procedure takes place.

DeCommas team not only provides this service but also is ready to advise you and introduce the essence of this tool.

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Paschal Okafor is NaijaTechGuide Team Lead. The article Why Crypto Bridges are so Important? was written by NaijaTechGuide Team. The article was last modified: May 25th, 2022
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