Blockchain bridges: Guide to cross-chain data sharing

Decentralized blockchain networks face challenges in interoperability and communication, limiting their widespread adoption due to isolated ecosystems. Blockchain bridges, or cross-chain bridges, have emerged as a solution to facilitate communication and data transfer between distinct blockchain networks, thus enhancing interoperability and promoting decentralization. These bridges can be categorized into trust-based and trustless types, with trustless bridges depending on smart contracts for security and flexibility. Cross-chain solutions, such as Binance Bridge and Avalanche Bridge, enable asset transfers between networks like Ethereum and Binance Smart Chain, enhancing developer experiences by reducing transaction costs and congestion. Additionally, cross-chain technologies like atomic swaps, relays, and merged consensus allow for the exchange of tokens and data across different blockchains, although challenges such as transaction rate bottlenecks and trust disparities persist. The evolution of cross-chain technology is pivotal for blockchain's widespread adoption, enabling faster transactions, reduced costs, and the creation of new user platforms.