Can a Cross-Chain Bridge Connect Multiple Blockchain Networks?

The blockchain interoperability market is expected to reach $17.9 billion by 2030. Cross-chain solutions, being a cornerstone of this ecosystem, are set to shape this very future. But are our cross-chain solutions powerful enough to address the challenges left by traditional bridges? And, actually, act as the backbone of this evolving blockchain ecosystem?  

The answer, I believe, is yes. But let's learn together how this crypto cross-chain bridge is going to work and what impact it will have on the future of blockchain altogether.

What is a Cross-Chain Bridge?

A cross-chain bridge is a technology that allows blockchain networks to interact with each other to transfer assets or data. Since blockchain, and the very essence of defi, is to offer independent secure networks, blockchains are natively not compatible with one another. So, when you need to trade your assets across two networks, these cross-chain bridges act as a communication link and offer a smooth interaction experience.

How Does a Cross-Chain Bridge Work?

Now that we know what is a cross-chain bridge, let’s discuss how it works.  

Say you want to move tokens from Ethereum (ETH) to BNB Smart Chain (BSC), a cross-chain bridge crypto generally uses the following process to facilitate your transactions:

Locking the Asset on Source Chain: Start by initiating a transfer of tokens from source chain to destination chain.

Verification: Your assets and the bridge protocol are then verified by validators. Minting: Once the asset on ETH chain is verified, the bridge mints its corresponding token to the BNB chain. The minted token represents your original token and is now used in the Binance ecosystem.

Reversal: Once you have carried out the desired process, you can initiate the reverse process. For this purpose, the minted token is burnt on the BNB chain and the relevant original asset is unlocked on Ethereum chain.

Types of Cross-Chain Mechanisms

Now, the abovementioned is a general process of how cross-chain transactions work. In specific, cross-chain bridges deploy one of the following three mechanisms to facilitate the process:

Burn and Mint:  

A token is burnt on source chain and its equivalent token is minted on destination chain simultaneously. Once the desired operation is carried out, the token on destination chain is burnt and original toked on source chain is re-minted.

Lock and Unlock:  

Simply, a token is locked in a smart contract on source chain while its equivalent token is unlocked from a liquidity pool on the destination chain. When you have finished the desired transaction, tokens on destination chain are relocked and the ones on source chain are unlocked. This mechanism works well in cases where liquid assets are readily available on said chains.

Lock and Mint:

Also known as the wrapped token approach, this mechanism locks the native token on smart contract on the source chain and a wrapped version of the same is minted on the destination chain. Now once you have completed the desired trade, the wrapped token is burnt on destination and the native token is unlocked. This method is most widely used in the defi ecosystem because it is backward-compatible with most tokens.

Now that the mechanism for connecting two blockchain networks is out of the way, let’s discuss if the same can be applied to a cross-chain bridge that handles multiple blockchains.

Can Cross-Chain Bridges Facilitate Connection Between Multiple Blockchain Networks?

In short, yes. While traditional bridges were only able to facilitate interaction between two blockchain networks, evolution has done a number on bridges too and now, some popular cross-bridges do allow interactions across multiple blockchain networks.

ARMswap, for instance, is a cross-chain bridge that utilizes advanced cross-chain protocols to create a unified trading experience. It allows you to trade assets across multiple blockchains, ensuring smooth interoperability. In fact, ARMswap supports 30+ blockchain networks at the moment, with plans to add 20 more EVMs to the panel before the end of 2025.

Benefits of Cross-Chain Bridges

Apart from interoperability and cost-efficiency, cross-chain bridge development offers a multitude of benefits. Let’s take a closer look at the most significant ones:

Enhanced Liquidity:  

A cross-chain bridge creates a more unified marketplace which fragments liquidity pools. So, traders can benefit from a wider range of assets, and better execution, without being limited to one blockchain.

DApps' Expansion:  

Cross-chain bridges offer developers the opportunity to access a larger audience, across multiple chains, and build dApps for the same.

Enabling Tokenization of Real-World Assets (RWAs):  

With cross-chain bridges, RWAs become more accessible for interested investors who can then trade the assets across multiple blockchain networks. This basically turns high-valued assets into a global investment opportunity.

The Future of Cross-Chain Bridge Development with ARMswap

With ARMswap at the forefront of cross-chain bridge revolution, the future looks promising. We can foresee innovation, accessibility, and above all, interoperability. Currently, ARMswap is offering you:

High Level Security:

Because of Hardware Security Modules (HSMs), you can trade, swap and invest your crypto tokens seamlessly. The goal of this technology is to securely process your transactions and protect your funds from any unauthorized access.  

In the next phase, ARMswap will implement Secure Multi-Party Computation (SMPC) that will enable users to experience an even higher level of security.

Cross Chain Swaps on the Go

ARMswap is also set to launch its own mobile application. The goal of this app is to make token management, and trading across different platforms, more convenient for the users.

Support for 31 Blockchain Networks

ARMswap’s cross-chain bridge supports 31 blockchain networks including AirDAO, Conflux, Chiliz, CORE, Ethereum POW, Flare, Bouncebit, Moonriver, Zksync, OKXChain, THETA. With plans to integrate 20 additional EVM-compatible blockchains by July 2025, the platform is on a mission to expand its reach and enhance interoperability across the crypto ecosystem.

Investment and Earning with Liquidity Pool

ARMswap lets you enjoy a share of total swap fees along with free ARMSP tokens by adding liquidity to the liquidity pools. You simply need to connect your wallet to ARMswap, select the desired pair, enter the amount you want to add as liquidity, and confirm the transaction. Against your contribution on our cross-chain bridge, LP tokens will be minted to your wallet as proof of liquidity provision.

Earn with the MVP Program

With ARMswap’s MVP program, you can earn crypto rewards for your valuable contributions towards the platform. This program is excellent for marketers, researchers, and developers. You can choose any of the categories – including bug bounty program, community engagement, marketing outreach, and innovative research ideas - based on your specialty to get rewards of cross-chain bridge crypto.

Final Words

Cross-chain bridges are rapidly shaping the future of how the blockchain ecosystem grows. As platforms like ARMswap evolve, it heralds a more interconnected age of cryptocurrency, offering users all the benefits of decentralization without the hassle of isolated blockchains getting in the way of the liquidity of their digital assets.