Please enter CoinGecko Free Api Key to get this plugin works.

Third-party cross-chain bridges are sparked by avalanche growth

In 2021, the Avalanche blockchain debuted its own official Ethereum bridge, but now a third-party cross-chain bridge claims to lower transaction costs even more.

Umbria Network has released a new cross-chain bridge for Avalanche (AVAX), a Layer-1 proof-of-stake (PoS) blockchain network, to let traders transfer liquidity between Ethereum mainnet and the Avalanche blockchain.

Multiple virtual machines, such as WebAssembly (WASM) and Ethereum Virtual Machine (EVM), are supported by the Avalanche blockchain, allowing distinct sub-chains to use different methods of operation.

Connection to Avalanche is simple because to the support for many virtual machines. In 2021, the network unveiled its official Ethereum bridge, which allows ERC-20 and ERC-721 tokens to be transferred back and forth between the two blockchains. However, the network’s expansion, along with the fact that its native token, AVAX, has seen significant increases in recent months, has led to the construction of third-party cross-chain bridges.

In comparison to the official AVAX bridge, Narni, a new cross-chain bridge from the Umbria Network, promises to deliver a 90 percent lower transaction price. The platform claims that their own technology, which employs single asset liquidity pools and a custom oracle protocol, decreases the computational complexity of bridging and hence lowers costs by up to 90%.

Barney Chambers, Co-founder and co-lead developer of Umbria, explained to the role of AVAX and cross-chain bridges, saying that the Avalanche blockchain permits decentralised applications that are not economically possible on Ethereum. He continued, ”

 

“Umbria serves as the glue that connects all of the L1 and L2 blockchains, allowing users to shift their assets cheaply and quickly.” Users will not even need to know what blockchain they are using in the future, according to Umbria.”

Cross-chain bridges have become a lifeline for the decentralised finance ecosystem, especially while the Ethereum gas fee issue persists and appears to be here to stay until ETH 2.0 is released. Popular blockchains featuring cross-chain bridge functionality include Avalanche, BNB Chain, Solana, and Tezos.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Leave a Comment

Your email address will not be published. Required fields are marked *

Facebook
Twitter
Telegram

Recent Posts

Follow Us