Try Quests to earn SOLGoing Down The Wormhole
Project : Solana
Bounty Name : Going Down The Wormhole
Question: How are tokens being bridged from chain to chain and which actions seem to be popular among users of Wormhole? What actions seem to influence bridging behavior? What are users doing before and after bridging? Do users seem to think that bridging is safe or more risky relative to transfers to centralized exchanges?
Date of analysis : 2022-08-10
What Is Bridge
A blockchain bridge, otherwise known as a cross-chain bridge, connects two blockchains and allows users to send cryptocurrency from one chain to the other. Basically, if you have bitcoin but want to spend it like Ethereum, you can do that through the bridge.
One of the biggest problems of blockchain was the inability to work together. While fluid and somewhat efficient as single entities, each blockchain is limited by the walls of its own domain. Most often this can lead to high transaction costs and congestion.
Blockchain bridges solve this problem by enabling token transfers, smart contracts and data exchange, and other feedback and instructions between two independent platforms.
These blockchains mint different coins and operate on different sets of rules; the bridge serves as a neutral zone so users can smoothly switch between one and the other. Having access to multiple blockchains through the same network greatly enhances the crypto experience for most of us.
This concept is a lot similar to Layer 2 solutions even though the two systems have different purposes. Layer 2 is built on top of an existing blockchain so while it does improve speed, the lack of interoperability remains. Cross-chain bridges are also independent entities that don’t belong to any blockchain.source
About Wormhole
Wormhole is a decentralized, universal message-passing protocol that connects to multiple blockchains. In simple terms Wormhole allows different blockchains like Ethereum, Binance Smart Chain, Terra, Solana, Polygon, Avalanche and Oasis to communicate with each other. It addresses two of the main problems that plague blockchains today:
- Tokens are hard to move between blockchains without relying on centralized exchanges for bridging and swapping tokens. However, this means users are subject to counterparty risk.
- Decentralized applications (DApps) and smart contracts on different blockchains cannot communicate with each other, making interoperability between chains difficult to achieve.
Wormhole solves this by monitoring several chains for messages emitted by smart contracts on those chains. This is achieved through the Wormhole Core Layer, a core contract deployed on each chain that routs the received messages to the target chain, the core function of the previously mentioned universal message-passing protocol. A guardian network consisting of 19 nodes secures Wormhole.
This system enables cross-chain communication protocols like token and NFT bridges, cross-chain oracles and other messaging applications that would not operate without Wormhole's infrastructure. source
Metrics
- Bridge from Solana to Ethereum
- Bridge from Ethereum to Solana
- Average size Bridge from Ethereum to Solana
- Total users that bridge from Ethereum to Solana
- Distribution of wallets by total bridged amount
- Number of Wallets(Weekly)
- Number of Transfers(Weekly)
- Average Amount Transfers (Weekly)
- Wormhole Bridgers General Statistics
- Top 10 Asset that Wormhole Bridgers Currently Hold
- Top 10 Assets Bridge from Ethereum to Solana
- Users Activity in Wormhole
- User Action After Bridge
- Users Activity Before Bridge
In charts above we see the amount bridge from ethereum to solana and from solana to ethereum. The point that is very clear is that users prefer to bridge their funds from ethereum to solana and the diagram above shows this point. The most popular asset to bridge amoung wormhole users was USDC because this token has 23% of total bridges. Total users of wormhole bridges was 10.8K.
Conclusion
- Users prefer to bridge their funds from ethereum to solana
- Most popular asset to bridge amoung wormhole users was USDC
- Total users of wormhole bridges was 10.8K
- Average bridge size was 104K
- Transfer most users activity in wormhole
- Top users activity before bridge was transfer
- Top users activity after bridge was transfer
