What Is a Blockchain Bridge? How Does It Work? It’s Benefits.

Karthik. Kc
3 min readNov 12, 2020


Now it is common that stores have the board showing Bitcoin Accepted or Crypto Accepted with the QR code.

But the problem is most stores accept the payment in only one crypto majorly Bitcoin, as crypto enthusiasts, it is hard to digest the fact that you don’t have the choice to choose the best crypto to transfer instantly.

Even developers face the same problem for eg; if you developed DApp on ethereum which have the great community support, widely supported token standard and the most-adopted smart contract platform also facing a problem of scalability, but if you want to move another platform like EOS then, you lose out on the benefits that Ethereum does offer.

This interoperability issue slowed down the blockchain growth, however; thanks to the Bridges promising to tackle the interoperability issue.

What Is The Blockchain Bridge?

As a name indicates, it is a process connecting two different blockchain ecosystems to transfer the funds and tokens.

The challenge stated above can be solved with Blockchain Bridge. In a truly interoperable blockchain ecosystem, tokens, data and smart contracts could potentially travel between many different platforms.

How Does the Blockchain Bridge Work?

No funds, data, tokens, are transferred directly using the blockchain bridge. To create an interoperable blockchain ecosystem bridge using mint-and-burn protocol enabling constant token supply across all blockchain platforms.

Under the protocol when a token leaves from the ABC blockchain, it is either burned or locked while an equivalent token minted on the opposite blockchain. Similarly, when the token moves back to its original network, the “twin” token is burned or locked.

Bridges operate much like Blockchain under the decentralization spectrum and also bifurcated in two subjective bridges categories.

Types Of Blockchain Bridge.

Federated Bridge.

Here in the federated bridge, a criteria has been set out for the user to take part in the federation that manages and oversees bridge transactions.

Trustless Bridge.

Opposite to the federated is a trustless system where anyone can join the platform as an agent without any permission.

The agents are incentivized to ensure that bridge transaction is validated correctly just as the miners on Ethereum are incentivized with gas for validating transactions.

Ok, now you have understood what a Blockchain bridge is, how it works and different types but the main reason bridges exist is for their benefits to the blockchain.

Benefits Of Blockchain Bridges.

Tackles Interoperability.

Interoperability is a big issue in the blockchain. Blockchain bridge tackles the issue by building interconnected links that enable communication and interaction between two blockchain systems.

Solve Scalability.

Large blockchain networks like Ethereum, Bitcoin are struggling to process the ever increasing number of transactions because the block time in the large blockchain networks is very, very far from being able to run apps with millions of users and serve the practical needs of businesses.

Blockchain bridge by linking two blockchain provide a solution to tokens and DApps to leverage opposite blockchain functionality, also building instant payments at the point of sale that takes the load off from the blockchain.

Build Connectivity.

By allowing data and tokens transferability between two blockchains builds connectivity and also a big impediment to the mass adoption of the technology.

Reduce Cost.

Leveraging the opposite blockchain that charges less fee than the original one helps Tokens and DApps developers to reduce the cost.

Exposure to Small Blockchains.

When developers move to other blockchain networks which are small and less expensive one through bridges, limelight on small blockchains.


Blockchain Bridge is the best solution to the interoperability issue, but still, the development of blockchain bridges are in a premature stage and may take considerable time to grow into a full fledged bankable application.

The incidents like tBTC are holding bridges further developments. tBTC is a Bitcoin Ethereum bridge that had to be shut down two days after launching because developers found a bug in the code that made it impossible to continue operating.

Anyway Blockchain bridges are here to stay longer, what do you say?

If you got valuable insights from the post, don’t forget to share with your family and friends.

Originally published at https://ccoingossip.com on November 12, 2020.