Compared with multi-chain and multi-layer cross-chain bridges, is there a greater opportunity?

For cross-chain bridges, I think there are two correct solutions:

  1. More complex and decentralized – probably closer to the native level of the protocol.
  2. slower and more expensive.

Let’s start with 2), why are traditional payment methods slower and more expensive? Because this reduces risk, long delays and random checks can reduce fraudulent messages, and higher fees also raise the cost of bad behavior .

But unlike traditional payment processing, where fraud is only a fraction of the total transaction volume, in cryptocurrencies, a single mistake can often result in the loss of all funds. So in this case, our only options are more security checks, time delays for large transactions, daily transaction caps, etc. This is a rather painful but practical solution.

For 1), almost every model you can think of comes back to a key question:

You need a way to read from a different chain (trust issues), or write to a different chain.

However, this means we can improve one case: L2.

A true L2 often writes back to Ethereum regularly, which means that they can batch a series of transactions related to cross-chain bridges. So let’s imagine the ZKP system in this model:

  • There is a burnForVoucher() command in the cross-chain bridge contract;
  • The user burns their tokens, generating two proofs, one that the token has indeed been burned, and one that the token has not been minted;
  • On Arbitrum or Optimisim, the user uses the redeemForTokens() command;
  • Contracts check proof that their tokens have not been minted, and if the timestamp is outside the time since the last write to the main chain (to prevent double spending);
  • Tokens are issued to users;
  • Users are charged a small Rollup fee;
  • L2 sends this transaction back to the main network separately, and charges the user for using the cross-chain bridge in the last write interval;

There are various ways to add an extra layer of security, such as holding tokens until the next L2 write occurs . This mode also requires specific support provided by L2 to implement, but it increases the potential for truly secure bridging.

While it only applies to L2 and not other chains, the reality is that there are always two trade-offs when we choose a cross-chain bridge, they are either more secure or faster and more affordable.

But if our multi-chain future, it’s not multi-chain but multi-layer, multi-shard – focused on (true) L2, then we can build better cross-chain bridges, communicating back and forth, because L2 already does this. This is likely to be a huge opportunity for teams focused on the L2 vertical.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/compared-with-multi-chain-and-multi-layer-cross-chain-bridges-is-there-a-greater-opportunity/
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