What is a crypto bridge?

What is a bridge? A bridge is an application that uses cross-chain communication technology to enable transactions between two or more networks, which can be Layer 1s, Layer 2s, or even off-chain services. Simply put, a bridge allows crypto holders to transfer their assets from one network to another.

What is a blockchain bridge?

A blockchain bridge is a tool that lets you port assets from one blockchain to another, solving one of the main pain points within blockchains – a lack of interoperability. Since blockchain assets are often not compatible with one another, bridges create synthetic derivatives that represent an asset from another blockchain.

Are crypto bridges the future of blockchain & cryptocurrencies?

It’s now clear that Crypto bridges will play a pivotal role in the long-term success of blockchain and cryptocurrencies. According to recent stats, more than 100 different public blockchains are actively working. These blockchains have unique design trade-offs, security protocols, performances, transaction costs, communities, and applications.

What is a bitcoin bridge & how does it work?

Some bridges, known as unidirectional or one-way bridges, allow you to port assets only to the target blockchain and not the other way around. For instance, Wrapped Bitcoin allows you to send bitcoin to the Ethereum blockchain – to convert BTC to an ERC-20 stablecoin – but it doesn’t let you send ether to the Bitcoin blockchain.