Category: 7. What are Blockchain Bridges and how its work?

Central points of failure As one of the most popular solutions to bridging blockchains is to require some level of trust this naturally brings the disadvantages of a single central point of control.  This could either be in the form of censorship of access or transaction, bad faith on the part of the central point…

Transaction Fee & Price Efficiency Without bridges each blockchain has a monopoly on what users of their supported assets can do. As more bridges connect to each of the layer 1 blockchains and their layer 2 applications, that monopoly is broken and users have more choice in how they transact. Users can search for lower…

The downside of trustless blockchain bridges is that the increased complexity increases the attack vectors, as illustrated by two massive hacks in early 2022. In February the Wormhole Bridge hack saw 120,000 Wrapped Ether (wETH) tokens, valued at $326million, stolen from the Solana side of a bridge to Ethereum. The Wormhole incident was quickly eclipsed by…

As challengers to Bitcoin and Ethereum have emerged so have solutions to bridge between the growing number of layer 1 chains. Solana Solana has huge appeal as a layer one chain given the significant throughput it can achieve, with 50,000 transactions per second, compared to Ethereum with just 30. As Solana and its ecosystem have…

Ethereum is the dominant blockchain for supporting decentralised applications, particularly in the sector known as DEFI – decentralised finance. DEFI includes a whole range of financial services for crypto users, such as lending/borrowing and swapping. Given the problem of blockchain interoperability a significant proportion of the value within the crypto system is locked out of…

The solutions to the Interoperability Trilemma and verifying the flow of data between separate blockchains fall under two main categories:  Centralised/Trusted Bridges Decentralised/Trustless Bridges Centralised Bridges Centralised bridges provide a solution to interoperability by compromising on the trustless component of the trilemma through External Verification; aka off-chain. Off-chain verification can be through a single traditional…

Blockchain bridges are technical solutions for transferring data back and forth between two blockchains. Blockchains aren’t designed to be interoperable. They exist as isolated domains with unique operating logic, prioritising security and decentralisation. But there is a growing demand for users to move their information and assets between blockchains. Blockchain bridges, also known as cross-chain…

What you’ll learn: Why do we need crypto bridges? How do they work? Ethereum bridges & industry examples Safety, security, potential pitfalls