Best Crypto Bridges to use in 2023
Web 3.0 is on a rise, and the industry is booming now more than ever. As the market keeps growing and evolving, we also see new user needs and demand rise up. This has led to the development of cross chain crypto bridges. Essentially, bridges are platforms that enable the transfer of crypto assets from one blockchain to another. These assets can include anything from cryptocurrency to NFTs. As the need for a seamless flow of data is growing, crypto bridges have become more and more significant. With so many options to choose from, it is natural to wonder what are the best crypto bridges in the industry right now. In this article, we solve that question and give you a list of the best crypto bridges to choose from in 2023.
What are Crypto Bridges?
In the world of cryptocurrencies, a crypto bridge refers to a platform that allows the transfer of one cryptocurrency from one chain to another, without the need for a centralized intermediary like a traditional exchange. These cross chain bridges can help facilitate transactions between different blockchain networks and enable the transfer of assets from one blockchain to another.
Let’s take an example to understand it better.
Let’s say that Kane is a cryptocurrency trader who wants to buy some tokens on ZkSync, a new blockchain network that is not yet widely supported on traditional exchanges. Bob holds Ethereum, but the new tokens he wants to purchase are only available on the new network’s native blockchain, in this case which is ZkSync.
To get the new tokens on ZkSync blockchian, Jane could use a crypto cross chain bridge that supports both Ethereum and ZkSync, the new network’s cryptocurrency. He would first deposit his Ethereum into the bridge’s platform, and the bridge would then after deducting a small fee deposit the Ethereum into the new cryptocurrency at the current market rate.
Once the transfer is complete, Kane can then swap ETH to the new cryptocurrency on ZkSync. He could then hold the tokens or trade them on the new network’s decentralized exchange.
Without a crypto bridge, Kane would need to find a centralized exchange that supports the new tokens, which could be difficult or impossible if the tokens are not yet widely traded.
A crypto bridge enables Kane to access the new tokens without the need for a centralized intermediary and allows for more efficient and decentralized trading across multiple blockchain networks.
Now that we have understood what crypto bridges are, let us take a look at the top 6 cross chain crypto bridges to use in 2023.
Top 6 Crypto Bridges in 2023
It is feasible to perform cryptocurrency exchanges without a bridge, but it can be both costly and time-consuming. If users opt not to use a crypto bridge, they must initially convert their cryptocurrency token into fiat currency, which usually entails fees.
Next, they have to use the fiat currency to acquire the other desired cryptocurrency, resulting in additional fees and delays. This entire process is extremely long, expensive and cumbersome.
With a multichain crypto bridge, this process is simplified and made really easy for users.
However, all the benefits of bridges are only actually helpful when you use a dependable platform. The bridge you choose must be the best option possible. The six best options for a crypto bridge in our opinion are:
- Stargate Finance
- Multichain
- Orbiter.Finance
- Allbridge
- Synapse
- HopBridge
Stargate Finance
Stargate is a revolutionary liquidity transport protocol powered by a web3 ecosystem known as The Omnichain DeFi. Stargate enables users to seamlessly transact across various blockchains while enjoying unparalleled liquidity and minimal slippage, making it the preferred cross-chain bridge for large transactions. Unlike custodial solutions, Stargate’s cross-chain bridge is decentralized that enables cross-chain swaps at a nominal fee structure.
Currently, the platform boasts a staggering Total Value Locked of nearly 445 million US dollars, a testament to its growing user base and unrivalled value proposition.
With Layerzero tech, Stargate empowers users and decentralized applications to exchange utility assets across different blockchains while enjoying suitable liquidity pools that provide rapid and irrevocable finality. Transfers made through Stargate are assured to be successful on the destination blockchain, as long as they have been submitted on the source blockchain. Liquidity providers using Stargate can earn generous annual percentage yields ranging from 5% to 10% in the form of STG incentives. They can also participate in yield farming by staking their LP tokens in exchange for STG rewards.
Historically, cross-chain bridges have had to compromise on one or more of the fundamental features that define them: irrevocable finality, native asset support, and unified liquidity. Prior bridge solutions often had to give up at least one of these aspects to deliver a functional product. However, Stargate has pioneered a solution to this trilemma, becoming the first cross-chain bridge to offer all three features in a single platform. Stargate supports a diverse range of blockchains, including Ethereum, Binance Smart Chain, Avalanche, Polygon, Arbitrum, Optimism, and Fantom.
Stargate offers a unique value proposition in that it enables applications to natively facilitate cross-chain transactions. For example, Yield aggregators can integrate Stargate to unlock new APY prospects by seamlessly deploying assets across different blockchains. Stargate’s cross-chain swap fees are remarkably low, starting at 0.1% per trade. The platform supports a broad range of tokens, including ETH, WETH, USDC, USDT, DAI, FRAX, SUSD, and BUSD.
I mostly use Stargate for any kind of cross chain transfer. I find this crypto bridge be easy to use. Funds are transferred fairly quickly and the charges are very cheap.
Multichain
Multichain is a highly advanced Cross-Chain Routing Protocol that distinguishes itself as the “ultimate solution” for seamless routing in Web 3.0. Multichain’s inception dates back to the 20th of July 2020, where it began as “Anyswap“. The main goal of the platform was to bridge the communication gap between different blockchains and provide a highly efficient routing mechanism. With innovative solutions and cutting-edge technology, Multichain permits for practically all blockchains to interact with one another, providing greater ease of use and flexibility for developers and users alike.
The Multichain protocol operates as an open-source solution, a critical aspect that underscores its decentralized nature. Without open-sourcing its codebase, it would be challenging to verify whether or not the protocol is genuinely decentralized. The project holds the principle of trustlessness in high regard, allowing anyone to operate its cross-chain benefits. Furthermore, the system is entirely code-controlled, which alos means that there are no weal links in the form of externally owned addresses. This level of trustlessness provides a high degree of transparency and reliability in the protocol.
Multichain’s 1:1 bridge feature allows the flawless execution of 0-slippage transfers, thereby eradicating the invisible charges that are typically associated with an AMM. Beyond this core function, the network also provides several other valuable services. Notably, on June 4th, 2021, Multichain launched the beta mainnet version of its Multichain Router V3, offering users even more advanced routing capabilities. The platform also features an innovative anyCall Crosschain Contract Calls function that allows projects to execute cross-chain contract calls. Additionally, Multichain now also has a bridge and a router focusing specifically on NFTs.
The platform provided support to almost 89 blockchain networks and around 3599 crypto tokens. Multichain since its launch has been able to achieve a total trading volume of 102.42 billion US dollars and has a total value locked (TVL) of 2.11 billion US dollars. Last year in September 2022, they also launched their MPC2.0 fastMPC mainnet and now have around 21 nodes.
Learn more about: Multichain recovers $2.6M stolen funds, to reimburse losses on condition
Orbiter.Finance
Orbiter Finance is widely recognized as a prominent player in the realm of decentralized cross-rollup bridges. The platform’s sophisticated technology facilitates the seamless exchange of assets belonging natively to the Ethereum network, with a strong emphasis on maintaining decentralization and security. With its inception in 2021, the project has rapidly gained traction and garnered a significant user base consisting of a diverse set of individuals and organizations.
In the month of November 2022, a time of great uncertainty and volatility in the industry, Orbiter Finance successfully completed its first-ever funding round, raising a substantial amount of capital from investors such as Tiger Global, A&T Capital, Starkware, Cobo Ventures, and Mask Network. The project also received support from Vitalik Buterin, the creator of Ethereum, who contributed a generous sum of 16 ETH to the endeavour. This influx of funding undoubtedly provided Orbiter Finance with the resources it needed to continue its growth and development in the future.
The use of a layer 2 mechanism in the protocol helps to minimize safety concerns and the accompanying risks associated with traditional layer 1 software. Presently, Orbiter provides support for a vast array of blockchain networks, enabling users to carry out asset trades very easily. These networks comprise of Ethereum, StarkNet, zkSync, Loopring, Arbitrum, Arbitrum Nova, Optimism, Polygon, BNB Chain, ZKSpace, Immutable X, dYdX, Metis and Boba..
Orbiter Finance is renowned for its exceptional speed and economical pricing of transactions. The platform facilitates two crucial functions, namely the Maker and the Sender. The Orbiter’s official documentation elucidates the “Maker” as a cross-rollup service provider for the “Sender”. The Maker must deposit a surplus margin to the Orbiter’s contract before qualifying for the position. “In the usual process, the ‘Sender’ sends assets to the ‘Maker’ on the ‘Source Network’, and the ‘Maker’ sends back to the ‘Sender’ on the ‘Destination Network’”.
Orbiter.Finance is my go to crypto bridge that I use to move funds to ZkSync blockchain.
Also Read: How to interact with Orbiter Finance: Airdrop Guide
Allbridge
The Allbridge platform is a simplistic, user-friendly and trustworthy method for the easy exchange of digital assets across diverse networks. It serves as a gateway between non-EVM-compatible chains (such as Terra or Solana) and EVM-compatible chains (such as Ethereum, Polygon, and Binance Smart Chain) while also providing support for layer 2 solutions (such as Arbitrum, Optimism). The goal of Allbridge is to abolish the barriers between blockchain networks and deliver a means for hassle-free cross-network asset movements.
Allbridge facilitates the transfer of cryptocurrencies, digital assets, tokens and intends to expand its range to include NFTs as well. The platform offers a diverse set of transfer options, allowing users to send Native or Wrapped tokens from the source network and receive Native or Wrapped tokens on the destination network. In addition, Allbridge supports cross-chain swaps, ensuring a seamless and secure transfer experience for its users.
In every transfer process facilitated by Allbridge, two transactions are required, one on the source blockchain, and the other on the destination chain. The duration of the transfer largely depends on the confirmation time of the respective blockchain used. In the case of Allbridge, the platform ensures that the transaction speed is optimized to enable swift and efficient transfers. Therefore, if the confirmation speed of the blockchain used is rapid enough, the transfer can be completed within a matter of seconds.
Allbridge’s flexible fee structure enables stakers to reduce the charge of moving assets between different blockchains. By staking on the source blockchain, users can lower the bridge fee, which is settled before the actual trade. This dynamic fee system ensures that users have greater control over their transaction costs and can optimize their use of the platform.
Having made its debut in 2021, Allbridge has facilitated a bridge worth a staggering 6.4 billion US dollars to date. The platform boasts a range of products, such as the Allbridge Classic (a cross-chain bridging solution), Allbridge BaaS (a white-label bridging solution), and the Allbridge Core (a cross-chain stablecoin swap platform). Allbridge has also been supported by several leading names in the blockchain industry.
Synapse
The cross-chain network, Synapse, is a highly popular, versatile and secure communication platform established across chains. The network allows the integration of blockchains by providing a messaging system that facilitates the transfer of smart contract calls, tokens and other data. Developers can utilize Synapse to create cross-chain applications such as cross-chain margining approaches, yield aggregators, markets for derivatives, and lending protocols.
The network is composed of a cross-chain communication system and a consensus mechanism that ensures the security of transactions. Hence with Synapse, the interoperability between blockchains is both seamless and secure. The messaging infrastructure established by the platform is designed to function on a wide range of blockchain networks. The platform’s versatility allows developers to transfer a variety of data types between chains, including contract calls, NFTs, snapshots, etc
Its security model is based on the Optimistic prototype which guarantees that cross-chain transmissions will remain secure. According to their official docs, “Smart contracts from one chain use the Synapse Messaging Router to send the message to the destination chain, where a corresponding Messaging Router sends it to the destination contract. Messages are optimistically verified to ensure security and trustlessness.”
Synapse provides a straightforward method to swap assets using their AMM liquidity pools that are cross-chain compatible. The platform provides comprehensive backing for more than 16 EVM and non-EVM blockchains and is working towards developing new integrations regularly. It is also an ideal platform for developers as it offers an easy way to incorporate a token-bridging system that can work across networks, natively into their decentralized application.
Synapse has successfully handled a plethora of transactions with tens of billions in bridged funds processed since its inception. Its TVL stands at an impressive 259,006,010 dollars with a volume of 39.1 billion dollars. Moreover, Synapse prides itself on recording 7.06 million transactions to date, while its unique addresses amount to 1.29 Million. Additionally, it has collected a staggering 23.23 Million dollars in fees.
SYN token is an essential element of the Synapse network, with a wide range of use cases. The token serves as a reward for users who provide liquidity on the platform, as well as for those who vote on critical community governance issues. As the network’s native token, it is utilized for paying transaction fees and facilitates smooth cross-chain communication while ensuring maximum security and transparency.
Hop Bridge
Hop is an advanced rollup-to-rollup token bridge that facilitates scalable cross-chain transfers between different rollups and sidechains in real time, circumventing the network’s cumbersome challenge period. The platform relies on Bonders, who provide liquidity on the destination chain in exchange for a modest charge, to make this possible. The platform’s liquidity is dynamically adjusted and maintained through a sophisticated rebalancing mechanism that is fueled by these Bonders that operate decentralized nodes. These Bonders monitor state transitions on the source chain to verify the accuracy of transfers and assess whether to “bond” the transaction by shutting 110% of the transferred amount as collateral.
The Bonder extends a line of credit to users through hTokens, which are exchanged for their native token equivalent via an Automated Market Maker (AMM) on the receiving network. This process enables users to transfer tokens smoothly between networks. The hTokens have been developed to enable the protocol to create and destroy tokens automatically for easy transfer across different chains. This also helps in reducing the time taken to exit a particular scaling solution and enhances the capital efficiency of Bonders. Moreover, Bonders can release their fronted capital every 24 hours, thereby ensuring timely and secure transfer of tokens.
Hop’s designers were uncompromising in their commitment to security, creating a system with no weak points or trusted off-chain participants. Instead, the security is derived entirely from on-chain mechanisms. Individuals are provided with assurances on-chain that they will obtain their funds, even if Bonders are unavailable. In the unlikely occurrence that this happens, individuals must wait for the on-chain proof to be disseminated to the destination chain in order to manually withdraw their tokens. In the most adverse scenario, individuals may experience a delay, but their funds remain safe from the Hop Bridge.
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