Though blockchains require off-chain data, oracles aren’t the source. They simply provide a means to query, verify and authenticate external data sources provided via API Feed and then pass that data securely and reliably on-chain. Given that oracles are a conduit, they can function in several different ways varying by the direction of information flow… Continue reading How do Oracles Work in Blockchain?
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Why Oracle Services are used in Blockchain
In just over a decade blockchains have provided the foundation for a trillion-dollar cryptocurrency ecosystem but their design has a fundamental flaw. Without data from the outside world, described as off-chain, they would be very limited in the type of applications they could support, on-chain, verified and recorded within the blockchain. Blockchain oracles solve that… Continue reading Why Oracle Services are used in Blockchain
What is an Oracle in blockchain?
An oracle enables permissionless blockchains like Ethereum to access data from the outside world feeding Smart Contracts which can then execute specific actions within supported digital applications (dApps). Without oracles, blockchain applications would be limited to local data and the huge growth we’ve seen in areas like DEFI wouldn’t be possible. In this article, we’ll… Continue reading What is an Oracle in blockchain?
Disadvantages of blockchain bridges
Central points of failure As one of the most popular solutions to bridging blockchains is to require some level of trust this naturally brings the disadvantages of a single central point of control. This could either be in the form of censorship of access or transaction, bad faith on the part of the central point… Continue reading Disadvantages of blockchain bridges
Advantages of blockchain bridges
Transaction Fee & Price Efficiency Without bridges each blockchain has a monopoly on what users of their supported assets can do. As more bridges connect to each of the layer 1 blockchains and their layer 2 applications, that monopoly is broken and users have more choice in how they transact. Users can search for lower… Continue reading Advantages of blockchain bridges
Are blockchain bridges safe?
The downside of trustless blockchain bridges is that the increased complexity increases the attack vectors, as illustrated by two massive hacks in early 2022. In February the Wormhole Bridge hack saw 120,000 Wrapped Ether (wETH) tokens, valued at $326million, stolen from the Solana side of a bridge to Ethereum. The Wormhole incident was quickly eclipsed by… Continue reading Are blockchain bridges safe?
What are the best blockchain bridges?
As challengers to Bitcoin and Ethereum have emerged so have solutions to bridge between the growing number of layer 1 chains. Solana Solana has huge appeal as a layer one chain given the significant throughput it can achieve, with 50,000 transactions per second, compared to Ethereum with just 30. As Solana and its ecosystem have… Continue reading What are the best blockchain bridges?
Ethereum Blockchain Bridges
Ethereum is the dominant blockchain for supporting decentralised applications, particularly in the sector known as DEFI – decentralised finance. DEFI includes a whole range of financial services for crypto users, such as lending/borrowing and swapping. Given the problem of blockchain interoperability a significant proportion of the value within the crypto system is locked out of… Continue reading Ethereum Blockchain Bridges
How blockchain bridges work
The solutions to the Interoperability Trilemma and verifying the flow of data between separate blockchains fall under two main categories: Centralised/Trusted Bridges Decentralised/Trustless Bridges Centralised Bridges Centralised bridges provide a solution to interoperability by compromising on the trustless component of the trilemma through External Verification; aka off-chain. Off-chain verification can be through a single traditional… Continue reading How blockchain bridges work
What are Blockchain Bridges and how do they work?
Blockchain bridges are technical solutions for transferring data back and forth between two blockchains. Blockchains aren’t designed to be interoperable. They exist as isolated domains with unique operating logic, prioritising security and decentralisation. But there is a growing demand for users to move their information and assets between blockchains. Blockchain bridges, also known as cross-chain… Continue reading What are Blockchain Bridges and how do they work?