🌁Bridge

Definition

A blockchain bridge is a connection that allows the transfer of tokens and/or data from a blockchain to another, including smart contract instructions.

The two blockchains have different protocols, rules and governance models (such as Fantom, Bitcoin and Ethereum), but the bridge provides a compatible way for them to operate with each other securely on both sides.

This interoperability allows users to make fast, low-cost transactions of tokens hosted on otherwise less scalable blockchains and run Dapps on more than one platform.

Bridges can be created to suit various purposes and objectives. Not only are they capable of allowing a token from one network to be used on another, but also to exchange any type of data, decentralized identifiers, off-chain oracle information and much more. Bridges allow applications to be even more decentralized by not being limited by their home network.

Which types of bridges we have?

There are various bridge designs, but they can generally be divided into two categories: more centralized bridges, which rely on trust, and decentralized bridges.

Centralized bridges rely on some sort of central system or authority to operate; this implies that users must trust a mediator to use a particular application or service.

In contrast, decentralized bridges are those that do not require users to place their trust in an external authority or entity. In this case, the trust is placed in the mathematical algorithm embedded in the code. In a decentralized blockchain system, this is achieved by nodes reaching a consensus in common agreement with the rules established in the software. This eliminates many of the problems of centralized systems, which are open to abuse of power or corruption, through transparency and the incentive of widespread participation.