Ethereum Network Merge Upgrade Will Play a Central Role in the Future of Cross-Network Bridges, Says Andrew the Greatco-founderAlbridge.
Blockchain bridges: what is it?
Before we get started, it’s worth remembering what blockchain bridges are. A blockchain bridge or bridge is a platform that allows the transfer of assets between multiple networks. For example, you can use a bridge to transfer USDT from the BNB chain to Ethereum.
In this example, BNB Chain is the so-called EVM (Ethereum Virtual Machine) compatible blockchain. However, there are also what we call EVM-incompatible chains, which have a special architecture and are much more difficult to integrate. Some of these blockchains include Solana and Near Protocol, just to name a few.
What impact will the merger have on EVM-enabled blockchains?
The merger, i.e. the merging of the current Ethereum execution layer with the new Proof of Stake consensus layer called Beacon Chain, will have a significant impact on blockchain bridges.
As soon as the update is released, some users will start moving their assets from EVM-enabled networks to Ethereum. However, most people will wait until the network is stress tested first for fear of losing their assets. Indeed, it is quite possible that critical issues will be discovered after the network transitions to the PoS consensus mechanism.
However, over time, and if Ethereum passes the stress tests, we will see a reduction in the user base of EVM networks.
Ethereum 2.0 in the long run
If we think about the long term and if Ethereum becomes as scalable as promised after the third phase of the merger, then this will significantly affect the scaling protocols, in particular Arbitrum and Optimism. In addition, a decrease in interest in other EVM blockchains will increase transfers to Ethereum, where the bulk of users will remain.
While this may initially lead to more transactions and transfers, the benefit will be short-lived as other networks may become useless after a full Ethereum migration.
Merging and Blockchain Interaction
I think that when Ethereum attracts users from other EVM networks, the bridges that connect it to them will start to play a big role. Indeed, users are interested in transfers between Ethereum and other non-EVM blockchains such as Solana. As such, existing blockchain bridges will need to adapt to support non-EVM protocols after the merger.
Allbridge Core, our new bridging solution, anticipated the changes the merger could bring to the DeFi ecosystem. With our stablecoin bridge, we enable seamless trading between Ethereum, BNB Chain, Tron and Solana.
We believe that this transmission solution, which covers both EVM and non-EVM networks, will remain an important tool for users even after the merger.
about the author
Andrey Veliky is co-founder and CEO of Allbridge. An experienced crypto-entrepreneur, Andrey holds a Cisco Network certification and has been working in IT since 2002, mainly in data center and network architecture. Andrey entered the crypto world in 2015, starting with the creation of mining farms, and then moving on with technological innovations such as the integration of crypto payments into devices at the point of sale, cyber security and non-custodial wallets, multi-chain cryptocurrencies. In 2021, he co-founded Allbridge, a blockchain bridge that allows the transfer of arbitrary tokens and/or data between EVM-enabled and non-EVM-enabled blockchains.
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