4.2.0. Cross Chain Technology
Besides wrapped technology, another technology being developed in the Crypto Market that will enable cryptos from one blockchain ecosystem to interact with another ecosystem is Cross-Chain.
In simple terms, Cross-chain Technology is an emerging technology that seeks to allow transmission of value and information between different blockchain networks through the building of digital bridges.
In simple words, cross-chain technology is technology in which bridges are built that allow cryptos on one blockchain to interact with another blockchain.
Thus, Cross Chains are also called Blockchain Bridges.
4.2.1. Examples of blockchain bridges are:
(1). THORChain (RUNE)
This is a decentralized cross-chain exchange that allows users to easily exchange cryptocurrency assets across a range of networks without losing full custody of their assets in the process.
(2). Bifrost (BFC)
Bifrost is a multichain middleware platform that enables developers to create decentralized applications (DApps) on top of multiple protocols.
(3). ChainBridge
This allows Centrifuge to move fungible tokens and NFTs between chains.
(4). Polkadot bridges
In 2020, Polkadot was launched. It was designed as a “blockchain of blockchains.” Polkadot allows several independent blockchains called Parachains to interact and operate among themselves while at the same time each of these Parachains benefit from the security services provided by Polkadot’s central Relay Chain.
In other words, Polkadot is a blockchain that allows Parachains and other external blockchains such as Ethereum and Bitcoin to interoperate through blockchain bridges.