Analysis of bridge-solutions for public blockchains

Abstract

Interoperability between public blockchains has become a critical factor in releasing the full potential of decentralized systems. This Master thesis investigates and analyzes various bridge solutions designed to facilitate the seamless transfer of assets and information across different blockchain networks. The study delves into the characteristics, security considerations, and scalability implications of centralized, somewhat centralized, decentralized, and untrusted bridges. Through a in depth examination of these bridge types, their strengths and limitations are identified, providing a comprehensive understanding of their functionalities in bridging technologies. The research continues with an exploration of some real cases of bridge applications and their pros and cons. Furthermore, the study delves into the technical aspects of these bridge solutions, including the role of smart contracts, hash time lock mechanisms, and transfer confirmation processes. To complete this work, this Master thesis includes the development of a self-bridge. The self-bridge serves as a concrete example of a decentralized bridge, showcasing the practical implementation and operation of an interoperability mechanism. Through empirical evaluation and analysis, the project aims to provide insights into the challenges and advancements in bridging technologies.