What is a blockchain bridge?

Nov 17, 2022

What is a blockchain bridge? image

A blockchain bridge connects two blockchains to enable transactions between those two. If you own ETH, ALGO or SOL and want to use it in another Blockchain network you will need a blockchain bridge to allow you to transact in the other blockchain without selling your original cryptocurrency. Cross chain bridges are essential for the future of interoperability in the industry.

Types of Blockchain bridges

There are two main types of bridges.

Custodial or Trusted bridges

Custodial bridges are those that are centralized, requiring users to trust a third party to operate the bridge safely. Security, reputation and technical knowledge are key with any bridge provider. With custodial or trusted bridges users give up control of their digital assets when bridging.

Non-custodial or Trustless bridges

Non-custodial bridges rely on smart contracts, a decentralized technology to manage the digital assets and bridge operation. There is no need for any third party. The code is the main concern for these bridges as they rely heavily on smart contracts and algorithms. With these bridges, the end user doesn't give us control of their funds.