Multi-Chain Projects Can Fix Blockchain Compatibility Problems

For investors, choosing the right blockchain network to put money and faith in can be difficult. This problem is amplified for everyday cryptocurrency users who want to experience the full breadth of what crypto has to offer but often find themselves holding a single coin that can only be used on a single blockchain. 

Consider that CoinMarketCap currently displays over 14,000 different cryptocurrencies – all with their unique traits and attributes – and the problem of blockchain compatibility becomes obvious.

For most of the crypto space’s existence, blockchain networks were separated by their technical differences. Just as you can’t buy a product from eBay by logging in to your Amazon account, you couldn’t use the coins from one blockchain on another.

Building a Bridge Between Blockchains

However, this problem is now being chipped away at every day, exemplified by the rise of multi-chain projects such as Celer Network. 

Celer Network is a multi-chain blockchain project that allows users to hop between various networks from Celer’s one-stop-shop interface. Using Celer Network, users can put their coins to work on multiple blockchains whether they are using NFTs, decentralized applications (dApps), or taking part in yield farming and decentralized trading. 

Celer is currently compatible with a range of disparate blockchains, including Ethereum (ETH), Polkadot (DOT), NEO (NEO), and many more. With the recent beta release of Celer’s new technical upgrade, cBridge v2.0, compatibility will soon also be achieved with Cardano (ADA) and Solana (SOL), with further additions to be announced in the coming months. 

The first iteration of Celer’s cBridge (v1.0) processed more than $1 billion worth of cross-chain transactions since it launched less than six months ago, with over $25 million worth of trades being executed on a daily basis. Needless to say, there are high hopes for its successor.

From Zero to $1 Billion in Six Months

Following the initial launch of cBridge, the value of Celer’s native CELR token increased by over 750%, climbing from a price of $0.02 to just over $0.17. The CELR token’s ascension signaled a clear desire among crypto users to utilize multiple blockchains simultaneously and highlighted the groundswell of support that’s been witnessed for fast, efficient layer-2 platforms.

Celer’s cBridge v2.0 introduces a new integrated liquidity farming tool and allows users to withdraw liquidity from multiple chains from the comfort of just one platform.

“Reaching $1 billion in transactions is an amazing testament to the effort our team put into designing what we believe is the best cross-chain bridge,” said Dr. Mo Dong, Celer’s Co-founder. 

“cBridge 2.0 is built to provide a much simpler user experience with a highly scalable and deep multi-chain liquidity management system to support billion-dollar daily cross-chain transfer volume for the entire ecosystem.” 

With the release of a new software development kit, Celer aims to foster a technical environment where developers can create cross-chain DEXs (decentralized exchanges) and cross-chain NFT minting. This will lead to a universal asset bridge which could potentially be used as the framework for future CBDC (central bank digital currency) systems.

Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of Tipranks or its affiliates, and should be considered for informational purposes only. Tipranks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. Tipranks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by Tipranks or its affiliates. Past performance is not indicative of future results, prices or performance.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.