BlockchainIntermediate#Interoperability#Infrastructure
Cross-Chain Bridge
C
Definition
A protocol that enables the transfer of assets and data between two different blockchain ecosystems.
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Concept Diagram
Key Takeaways
1
Cross-chain bridges connect different blockchains enabling asset transfers between networks
2
They lock assets on the source chain and mint equivalents on the destination chain
3
Bridges are the most hacked category in DeFi with over $2B lost to exploits
4
Trusted bridges use centralized validators while trustless bridges use cryptographic proofs
Practical Example
You want to use ETH on Arbitrum. You bridge 10 ETH through the official Arbitrum bridge: ETH is locked in a smart contract on L1, and 10 WETH is minted on Arbitrum L2. When you bridge back, the WETH is burned and ETH is unlocked on L1.
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Related Terms
Blockchain
Bridge RiskThe technical and security risks associated with moving assets between different blockchains, often vulnerable to exploits.
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AppChainA blockchain network built specifically to optimize the performance and governance of a single high-scale application.
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Atomic SwapA smart-contract technology that enables the direct exchange of cryptocurrencies across different blockchains without intermediaries.
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Layer 2 (L2)A secondary framework or protocol built on top of an existing blockchain (L1) to improve scalability and transaction speed.
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