Enabling complete interoperability by linking together multiple blockchain networks
A cross-chain bridge is a technology that enables the transfer of digital assets between two different blockchain networks. These bridges act as intermediaries, facilitating communication and transfer of assets between different networks that would otherwise not be able to communicate with each other. Cross-chain bridges typically rely on smart contracts, which are self-executing agreements programmed to execute transactions based on certain conditions.
When a user initiates his cross-chain transaction, the digital asset is locked into the original network's smart contract. The cross-chain bridge then transfers the asset to the target network, where he is held in a second smart contract. A second smart contract is programmed to release assets only when certain conditions are met, such as a confirmation of receipt from the original network or a specific amount of time has passed.
Cross-chain bridges are important for allowing digital assets to be transferred between different networks, which may have different protocols, consensus mechanisms, and smart contract languages. These bridges allow users to leverage the unique capabilities and benefits of different networks while expanding the potential use cases of their digital assets. However, current cross-chain bridges also face some technical challenges such as atomicity, scalability and security. Overcoming these challenges is critical to ensuring the integrity and reliability of cross-chain transactions, and that is exactly what Defiway has done.
Existing problems with bridges
There already have been some early attempts to connect blockchains. The following major issues have been identified:
Bridges rely on multiple networks and require additional steps to complete transactions, which can slow down the process.
2. High fees
Because cross-chain bridges require numerous activities across different networks and each network may have its own fee structure and fee rates, users may incur high transaction fees for each step of the transaction.
3. Large hack risk
Permission to create new tokens is necessary for bridge contracts, which increases the risk of hacking
4. Bridge Network Security
The security of the bridge network is essential for cross-chain crypto bridges, as it is the primary point of contact between different networks.
5. Missing popular tokens / Missing Stablecoin support
By enhancing token compatibility and expanding stablecoin support, cross-chain bridges can foster a more inclusive and efficient DeFi ecosystem with improved liquidity and broader asset accessibility
6. Maintenance and Upgrades
Keeping up with updates and changes on multiple networks can be challenging, particularly when dealing with different consensus mechanisms, smart contract languages, and protocols.
One of the biggest challenges faced by cross-chain crypto bridges is interoperability. Different blockchain networks use different protocols and consensus mechanisms, which makes it difficult to transfer assets from one network to another seamlessly.
8. Smart Contract Risks
Cross-chain crypto bridges often rely on smart contracts to facilitate transactions between networks. However, smart contracts are not infallible and can be vulnerable to exploits, leading to the loss of assets. Additionally, different networks may have different smart contract languages or limitations, which can make it challenging to develop secure and interoperable smart contracts.
9. Lack of Customer Support
Lack of customer support can be a significant obstacle for users seeking to use a cross-chain bridge, as it can make onboarding more challenging and increase the difficulty of resolving any issues that arise during the use of the crypto bridge.
How the Defiway Cross-Chain Bridge operates
Defiway Cross-Chain Bridge solves the concerns above through the following key features:
1. Fast transaction speed
Defiway increased speed by using layer-two solutions. These solutions are additional layers built on top of a blockchain network that can handle transactions more quickly and efficiently
2. One of the lowest transaction fees in the market
Defiway solved the issue with high transaction fees by using layer-two solutions that were mentioned earlier and optimizing gas usage
3. Usage of liquidity pools
Defiway lowered the risk of hacking through creating a bridge for fungible tokens that uses liquidity pools and has a flexible approach to deposits and claims . This solution provides a user with a lower risk of hacking compared to bridges that require minter roles.
4. Multisign Security
The bridge network needs to be robust and secure enough to prevent attacks and secure the user. Defiway has implemented an advanced protection mechanism called Multisign to make sure both user funds and user are safe.
5. Support of all favorite networks and tokens
Defiway bridge concept is both flexible and scalable, designed to achieve decentralization from the outset.
Instead of focusing just on 2 popular blockchain networks and a few tokens , Defiway provided users with the ability to transfer 4 various types of crypto coins across 13 different blockchain networks. You will be able to see the supported networks and tokens in the sections below.
6. Ongoing maintenance and upgrade support
Bridges are complex systems that require constant maintenance and upgrades to remain secure and interoperable. Defiway makes sure to provide ongoing support and enhancements to its current protocols in order to prevent bridge attacks and improve the transaction fees and speed.
Defiway cross-chain bridge was designed to support standard interfaces and protocols that enable different networks to communicate and transfer assets seamlessly.
8. Smart Contracts Protection
To address smart contract risks, Defiway employed 1 major strategy: Multisign.Multi-signature authentication requires multiple parties to approve a transaction before it can be executed, preventing unauthorized access to smart contracts and reducing the risk of hacks and attacks.
9. Constant Customer Support
Users can easily seek assistance or resolution for any issues or queries related to using the cross-chain bridge by submitting a request to the Defiway Support Team. The Support Team strives to respond within a few minutes directly on the website, providing users with prompt assistance and enabling a seamless onboarding process.
Defiway Bridge Protocol currently supports 13 blockchain networks:
More supported chains coming soon.
Defiway Bridge Protocol supports tokens from all leading cryptocurrencies.
More supported tokens coming soon.
Defiway ecosystem supports every EMV-compatible wallet and 1 TRX-compatible wallet.
Defiway's bridge is built on the blockchain and leverages smart contracts to execute transactions in a secure and decentralized manner.
To find out more detailed steps on how to use the cross-chain bridge, visit this page