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Blockchain bridge also popularly called as cross-chain bridge, connects two different blockchain ecosystems and enables transfer of cryptocurrency (tokens) from one chain to the other. One of the major problems of the proliferating blockchain networks has always been the lack of interoperability and Bridge protocol solves this problem.

Some of the popular bridge protocols being widely used by crypto users are Multichain, Celer Network cBridge, Polygon POS, dYdX, Across protocol, Binance bridge and Wormhole.

Bridges enable:

  • the cross-chain transfer of assets and information.
  • dapps to access the strengths of various blockchains – thus enhancing their capabilities (as protocols now have more design space for innovation).
  • users to access new platforms and leverage the benefits of different chains.
  • developers from different blockchain ecosystems to collaborate and build new platforms for the users.

The following are some scenarios where you can use a bridge:

Lower transaction fees

If user have ETH on Ethereum Mainnet but want cheaper transaction fees to explore different dapps. By bridging ETH from the Mainnet to an Ethereum L2 rollup, user can enjoy lower transaction fees.

Dapps on other blockchains

If user have been using Aave on Ethereum Mainnet to lend USDT but the interest rate for lending USDT using Aave on Polygon is higher.

Explore blockchain ecosystems

If user have ETH on Ethereum Mainnet and user want to explore an alt L1 to try out their native dapps. User can use a bridge to transfer your ETH from Ethereum Mainnet to the alt L1.