Avalanche’s New Cross-Chain Bridge to Further Reduce Transaction Cost

After launching its own official Ethereum bridge in 2021, the Avalanche blockchain has now come up with a third-party cross-chain bridge that claims to further reduce transaction costs. 

Reduced Transaction Cost

Avalanche’s new cross-chain bridge comes from the Umbria Network and aims to help traders transfer liquidity between the Ethereum mainnet and the Avalanche blockchain.

The layer-1, proof-of-stake blockchain network supports multiple virtual machines, including WebAssembly and Ethereum Virtual Machine, among others, and the same allows different sub-chains to incorporate a specific method of operations.

Multiple virtual machine support promotes easy connectivity with the Avalanche blockchain. In July 2021, the network launched an upgraded bridge, prepping DApps for mainstream adoption. The same claimed to be five times cheaper, faster, and more secure than before. 

The network’s official Ethereum bridge was built to allow the two-way transfer of ERC-20 and ERC-721 tokens across the two blockchains. However, the growth of the token and the larger ecosystem over the last few months reportedly led to the creation of third-party cross-chain bridges. 

What Changes?

The new cross-chain bridge by the Umbria Network is called Narni, and promises to offer a 90% cheaper transaction fee compared to the official Avalanche bridge.

The platform claims its system uses single-asset liquidity pools and a custom oracle protocol that reduces the computational complexity of bridging, thereby reducing the cost by up to 90%.

As per reports, Barney Chambers, co-founder and co-lead developer of Umbria, said that blockchain allows decentralized applications that are not economically feasible on Ethereum. he further added: 

“Umbria is acting as the glue between all of the layer-1 and layer-2 blockchains, enabling users to move their assets in a cheap and timely manner. At Umbria, we envision that, in the future, users will not even need to know what blockchain they are using.”

With interoperability and lower transactions being demanded by participants, cross-chain bridges have gotten more common.

Especially in the DeFi ecosystem, as the issues about ETH’s high gas fee continue to bother investors. Of late, Avalanche, BNB Chain, Solana, and Tezos have come forward as popular blockchains with a cross-chain bridge support.