Can a Cross Chain Bridge Work with Multiple Blockchain Networks?

As the blockchain environment keeps on developing, so does the requirement for consistent communication between different networks. Cross chain bridges have arisen as a solution for permitting interoperability between various blockchain networks by empowering clients to move tokens and information across chains. But can a cross chain bridge truly work with multiple cross chain networks, and if so, then how does this impact the future of decentralized finance (DeFi)? 

In this blog, we will explore the possibilities and technicalities behind cross chain bridges working with multiple blockchain networks and how ARMswap is leading the charge in this space.

Understanding Blockchain Networks

Before diving into the functionality of cross chain bridges, it is essential to understand what a blockchain network is. A blockchain network is a distributed ledger where transactions are recorded across multiple nodes. These networks use a consensus mechanism to validate and secure data making them tamper-resistant and decentralized. Each blockchain network whether it is Bitcoin, Ethereum, or others, operates independently which means there are limitations when users want to move assets or information across different chains.

How Many Blockchain Networks Are There?

As of now, there are hundreds of blockchain networks with new ones being created continuously. Some of the most popular ones include Bitcoin, Ethereum, Binance Smart Chain, Polkadot, and Avalanche. These networks each have unique functionalities and ecosystems which creates both opportunities and challenges for cross chain interaction.

How Do Cross Chain Bridges Work?

A cross chain bridge allows assets and data to move between different blockchain networks. For example, if you want to move tokens from Ethereum to Binance Smart Chain, a cross chain bridge crypto can facilitate that transaction by locking the tokens on Ethereum and minting equivalent wrapped tokens on Binance Smart Chain. This is achieved through smart contracts that manage the lock and mint process securely.

At ARMSwap, our Cross Chain Bridge integration supports seamless asset transfers between different blockchain networks. When users deposit tokens from a source blockchain, they receive wrapped tokens on the destination chain by assuring liquidity and accessibility across networks. This bridge supports over 31 EVM compatible chains offering extensive interoperability.

How Are Blocks Chained Together in Blockchain Networks?

In blockchain networks, blocks are chained together through cryptographic hashing. Each block contains a hash of the previous block along with transaction data. This creates an immutable ledger, where altering one block would require changes to all subsequent blocks making the system highly secure.

Can a Cross Chain Bridge Work with Multiple Blockchain Networks?

Yes, cross chain bridges can and do work with multiple blockchain networks. These bridges serve as intermediaries connecting otherwise isolated networks. However, implementing such a bridge requires robust technology and secure cryptographic protocols to prevent exploits and ensure trustless operation.

At ARMswap, we have built a Cross Chain Swap feature that allows users to swap between tokens across different blockchain networks, effectively making the bridge compatible with multiple chains. This swap feature is not limited to just two chains but can operate across several enabling seamless transfers between diverse blockchain ecosystems.

Blockchain Network Nodes and Their Role in Cross Chain Bridges

Nodes in a blockchain network play a crucial role in ensuring the security and decentralization of the network. These nodes verify and process transactions maintaining the integrity of the blockchain. In a cross chain bridge, nodes from multiple networks may be required to communicate with each other to facilitate token swaps or transfers. This interaction must be highly secure as any vulnerability could compromise the entire bridge system.

At ARMswap, our cross chain swaps are supported by a Secure Multi-Party Computation (SMPC) network. SMPC ensures confidentiality and security when exchanging information across blockchain networks. Nodes in this network execute a distributed signature algorithm allowing for secure cross chain requests without compromising the safety of the transaction.

Benefits of a Cross Chain Bridge in DeFi

The potential to transport assets throughout a couple of blockchain networks opens up several possibilities within the DeFi space. Users can now get access to liquidity pools to participate in yield farming and perform trades throughout networks without being confined to a single blockchain. ARMswap's liquidity pools allow users to add and withdraw liquidity income fee for their contributions. This dynamic creates a fluid ecosystem in which users can optimize their holdings across diverse chains.

How Do Cross Chain Swaps Work?

Cross-chain swaps allow users to exchange one cryptocurrency for another across different blockchain networks without needing to trust a centralized exchange. These swaps utilize smart contracts to ensure that the assets are transferred securely, and both parties receive the tokens they are swapping.

At ARMSwap, our Cross Chain Swaps offer users the ability to perform swift swaps between tokens on diverse chains. Users can contribute to liquidity pools and earn rewards based on their contributions benefiting from the growing liquidity across multiple blockchain networks.

Blockchain Network Diagram by Visualizing Cross Chain Bridges

Understanding how cross chain bridges work can be complex but a blockchain network diagram can help visualize the interaction between different blockchain networks. In a typical cross chain bridge setup, there are two blockchain networks and each with its own nodes, consensus mechanism, and unique assets. The cross chain bridge serves as the intermediary that locks assets in one network and mints equivalent tokens in another.

For example, when transferring Ethereum (ETH) to Binance Smart Chain (BSC), the bridge locks the ETH on the Ethereum network and creates wrapped ETH (wETH) on the BSC network. When the user wants to reverse the process, the wrapped tokens are burned, and the original ETH is released back to the Ethereum network.

The Future Plans of ARMswap for Cross Chain Integration

One of the most exciting features of ARMswap is the ability to create custom liquidity pools. At the time of launch, ARMswap offers custom pool creation for 20 mainstream blockchains but we aim to expand this number to over 100 by mid-2025. This will enhance cross chain bridge integration allowing even more assets to be moved across multiple blockchain networks.

The Future of Cross Chain Bridges

Wrapping up, Cross chain bridges are essential to the future of DeFi enabling interoperability between various blockchain networks. As more networks emerge, the demand for bridges that can handle multiple blockchain networks will only increase. ARMswap is leading the way in offering secure, efficient cross chain swaps and bridging solutions with support for over 31 EVM compatible chains. By utilizing advanced cryptographic technologies like SMPC, ARMswap ensures that users can confidently move assets across blockchain networks paving the way for a more interconnected blockchain ecosystem.

The cross chain bridge and swap features offered by ARMswap provide surpassed opportunities for interaction with the blockchain network of your choice regardless of your role in the market like a liquidity provider or a casual trader.