Layer by Layer Issue 3: Binance Smart Chain, Solana, Cosmos, and Terra

In this weekly series, we dive into some of the most interesting data and developments across the Layer 1 blockchain landscape. In past weeks, we’ve looked at activity on cross-chain bridges, which are quickly becoming a vital piece of infrastructure for blockchains looking to streamline capital flow to their chain. 

Effective cross-chain bridges can reduce the typical friction associated with transferring assets between chains by eliminating the need to convert assets through centralized exchanges and often allowing users to maintain their positions in native assets through a wrapped version on destination chains. For instance, bitcoin holders can easily convert their bitcoin to Wrapped Bitcoin (WBTC) on Ethereum, allowing them to use their BTC in DeFi apps on the smart contract platform without losing their original exposure.