Currently, the state of trading platforms in the crypto industry is still overly complex, with plenty of restrictions regarding many crypto-related features.
One of the biggest problems plaguing crypto investors is in relation to the transfer of large numbers of tokens across different networks, through network bridges, with limited swap options. Not every token can be swapped, because bridges might only have a dozen cryptocurrency pairs to swap between, at best.
Currently, some projects have created, or have attempted to create, their own cross-chain solutions by integrating bridges onto their platforms. This has significantly changed the world of DeFi, but still, even the most popular bridges have numerous restrictions that still make the process fairly difficult. The Binance Bridge (Panama) for example, only allows a maximum of three trades per 15 minutes. In addition, bridges usually only have a small list of specific tokens that are available for swaps across networks.
Investors often need to make 2 or 3 trades (while paying gas fees and commissions for each one) before they’re finally able to transfer funds onto their target network.
Still, after completing more steps and swapping the assets to the tokens supported by the bridge, users need to provide the native coin of that network to pay for GAS fees.
The entire process of cross-chain swaps is overly complex, takes too long, and is far too expensive for the simple act of transferring tokens across networks.
However, there are several complete solutions that exist for implementing a one-click Cross-Chain swap
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DeBridge and Cross-Chain Interoperability
DeBridge is a “Decentralized Standard for Cross-Chain Interoperability and Liquidity Transfers” focused on providing cross-chain services so that it becomes a lot easier to conduct cryptocurrency trades and exchange information across multiple blockchains.
Advantages:
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The cross-chain intercommunication of deBridge smart contracts is powered by a network of independent oracles/validators which are elected by deBridge governance;
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Validators run Chainlink oracle nodes;
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Cross-chain transfer through deBridge normally takes less than 1 minute;
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5 supported blockchains: Polygon, BSC, Ethereum, Arbitrum, Heco.
Disadvantages:
Still, there is the delay in cross-chain transfer, that may be caused by two factors:
1- The finality of transaction in the blockchain where the transfer is originated
2- Time required for validators to send confirmation transactions of the transfers The execution of transfers still is not instant.
2. ThorChain and Cross-Chain Swaps
THORChain is a decentralised cross-chain liquidity protocol based on Tendermint & Cosmos-SDK and utilising Threshold Signature Schemes (TSS). It does not peg or wrap assets, it simply determines how to move them in response to user actions.
Advantages:
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The network gives users access to a large variety of assets through cross-chain compatibility and simple asset listing.
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THORChain’s protocol improves upon the weakness of preceding cross-chain architectures.
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The network supports native BTC, ETH, LTC, BNB, and BCH assets. Non-custodial THORChain interfaces allows the swapping of native assets across chains, or pool them to earn yield.
Disadvantages:
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Recent hacks surrounding their cross-chain smart contracts
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Lack of security.
3.Rubic and Multi-Chain Routing
While other projects claim to offer cross-chain swap support on the platforms, their solutions are limited and gimmicky at best, whereas Rubic has created an actual and true Multi-Chain swap solution.
Rubic claims that its main goal in DeFi is to unite all blockchain networks into one place and help DeFi users easily swap assets in the easiest and most profitable way possible with the best rates and the lowest fees. To accomplish this, Rubic created Multi-Chain Routing, a tool that will enable traders to swap any token, on any network, quickly and without complicated and unnecessary steps.
Advantages:
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More than 9,500 assets to swap;
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The best rates and the lowest fees;
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One-Click Solution;
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Four connected networks: Polygon, BSC, Ethereum and now Avalanche
Disadvantages:
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The possibility of a transaction’s reversion, due to changes in exchange rates
Summary
In summation, It’s obvious that many projects on the DeFi market are aiming to create the best Cross-Chain solution and provide users with easy, fast and ready-to-use services. Still, there are only a few projects that are far ahead in development from others.
I’ve pointed out three projects that are worth watching now. And while different projects are making endeavours to create their new Cross-Chain services, existing solutions are building perfect platforms for Cross-Chain transactions.
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