What is a Blockchain Bridge?
A connection that allows the transfer of tokens and/or arbitrary data from one blockchain network to another.
Key details
- Interoperability
- Enables communication between otherwise isolated blockchains.
- Asset Transfer
- Allows tokens to be used on non-native blockchains.
- Liquidity
- Can help in distributing liquidity across different networks.
- Security Risks
- Bridges can be targets for attacks due to large amounts of locked assets.
Examples
- 01Wrapped Bitcoin (WBTC) on Ethereum, allowing Bitcoin to be used in Ethereum's DeFi ecosystem.
- 02Polygon's PoS Bridge for moving assets between Ethereum and Polygon.
- 03Multichain (formerly AnySwap) for cross-chain transactions across multiple networks.