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TheBlock 2022-05-31 16:51:35

Understanding Cross-Chain Bridges

Quick TakeAs the blockchain space evolves into segregated Layer 1 chains, liquidity and ecosystems become increasingly fragmentedWhile ecosystems can technically be “bridged” by porting code across compatible chains, the liquidity remains isolated across chainsCross-chain bridges are essentially liquidity pools that allow users to move liquidity across supported chainsSeveral cross-chain bridges have surfaced over the past year, and while they fundamentally share the same concept, there are minor differences in their implementationsAs cross-chain bridges start growing in total value locked, it becomes increasingly important to understand the security assumptions associated with each of these bridges

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