On September 8, 2021, Dmitriy Berenzon, research partner at 1kxnetwork, an early-stage crypto fund that helps founders bootstrap token networks, published a comprehensive research post concerning blockchain bridges. Berenzon’s study highlights the current “multi-chain market structure” and bridges that are making a myriad of blockchains compatible.
Researcher: ‘We Are Finally in a Multi-Chain Market Structure’
For quite some time now, multi-chain or cross-chain technology has been a holy grail of sorts in the cryptocurrency development space. People want to transact with other blockchains by leveraging bridges to different ecosystems.
Dmitriy Berenzon published a detailed article about the subject of cross-chain tech and bridges, and he believes we’ve finally reached a watershed moment. “After years of research & development, we are finally in a multi-chain market structure,” Berenzon stresses in his blog post.
Image of bridge technology “as of September 8, 2021; Illustrative / Not fully comprehensive,” according to research partner at 1kxnetwork, Dmitriy Berenzon.
Berenzon’s study looks at blockchains like Ethereum, Solana, Tezos, Avalanche, Polkadot, Binance Smart Chain, Cosmos, and more. The researcher notes that “interoperability unlocks innovation” as he highlights that “bridges are important because they enable users to access new platforms, protocols to interoperate with each other, and developers to collaborate on building new products.”
Moreover, Berenzon lists the many benefits of cross-chain interoperability like leveraging the tech for external validators and federations. Also, using the tech for light clients and relay protocols alongside the ability to access liquidity networks.
However, Berenzon’s report is not just a fluff piece about fintech, and he highlights that cross-chain tech and bridges are an “incredibly difficult problem in distributed systems.” He adds that things like finality and rollbacks need to be addressed, NFT transfers and provenance, alongside stress testing these blockchain bridges over time.