🫥 Cross-chain bridges are a powerful tool in the world of blockchain technologies. They serve as a bridge between different blockchains, allowing the transfer of assets and data between them. Here are the key aspects:
Cross-chain bridging is a protocol that enables interaction between blockchains, allowing them to exchange information and assets.
Bridges use smart contracts or special nodes to confirm events on one blockchain and create similar events on another.
📌 What are they for?
⚪️ Interoperability: Help different blockchains interact, expanding the possibilities of use.
⚪️ Asset Transfer: Allows the movement of cryptocurrencies and tokens between different networks.
For example, a bridge between the Ethereum blockchain and the Binance Smart Chain (BSC) blockchain can accept Ethereum (ETH) and issue Binance-Pegged ETH (BETH) on the BSC. This allows users to transfer their funds and use them on other blockchains.
Today, there are quite a lot of bridges for cross-chain transfers, and as the DeFi sector grows, their number is growing. Bridges are different, with different numbers of blockchains and tokens available for operations: one token can be transferred to several networks; convert several tokens between two blockchains; move multiple tokens between multiple blockchains.
