Cross-chain bridges have the potential not only to bring multiple blockchains to users, but also to revolutionize NFT markets and DeFi as a whole.
The ETH<>SOL token bridge supported by Wormhole is one example, of how popular chains are now interacting with each other. What’s more, another network joined the club recently: the Binance Smart Chain [BSC].
Users can start bridging assets seamlessly across these chains, from tokens to #NFTs.
— BSCDaily (@bsc_daily) October 11, 2021
A growing club
In a post, Wormhole Network – which supports the bridging of assets through Ethereum, Solana, and now BSC – gave its view of the Binance Smart Chain.
The statement said,
“Over the past year, BSC has seen insane amounts of growth as users from Ethereum were barred from yield farming and NFT trading opportunities due to high associated gas fees.”
Cross-chain bridges come with powerful possibilities for users taking part in DeFi, the exchange of tokens, or NFT trades. Furthermore, such bridges can put networks in competition with one other. They also signal the approach of Web 3.
Wormhole’s statistics for the ETH/SOL bridge give a glimpse of how much users can accomplish, thanks to cross-chain bridges. On 1 October, the interoperability protocol announced that there was more than $200 million in total-value-locked [TVL]. What’s more, over 100 NFTs had already used the bridge since 22 September.
Binance Smart Chain vs Ethereum
A look at the active network addresses on both Binance Smart Chain and Ethereum makes it clear why users are excited.
On 11 October, the number of active Ethereum addresses was 498,893.
By contrast, the number of active Binance Smart Chain addresses was 1,202,020. A stark difference, indeed.
But keep in mind…
Cross-chain bridges look like an exciting solution to the looming question of interoperability in the crypto sector. However, the ETH/SOL/BSC bridges might not be endgame. Security risks exist while transferring assets between chains. Adding on to this, transaction fees and congestion levels can be high.
1/This is a fake @DegenApeAcademy bridged from Solana to Eth using Wormhole on @opensea. The Wormhole network cannot prevent the wrapping of fake NFTs, so each user is responsible for independently verifying an NFT's authenticity. Here’s how you can use the origin verifier tool👇🏻 https://t.co/AczE9gDkag pic.twitter.com/SECMyv4U3U
— Wormhole (@wormholecrypto) September 25, 2021
For now, however, users will be eagerly watching NFTs, tokens, and more as they enter or exit the BSC ecosystem.