In 2022, Chainalysis, a Singapore-based research and analysis firm estimated that over $2 billion worth of digital assets has been stolen from blockchain bridges. This figure accounts for approximately 69 percent of all stolen crypto funds in the year. Bridges on the blockchain operate in the same way as the ones we are familiar with. A blockchain bridge links two blockchain ecosystems similarly to how a physical bridge connects two places in the real world. Through the exchange of data and assets, bridges facilitate connectivity across blockchains. But what are blockchain bridges and how it works? Let's take a tour of them.
What are blockchain bridges?
A tool created to address the issue of interoperability between blockchains is a blockchain bridge, sometimes referred to as a network bridge or a cross-chain bridge. Bridges are now an essential part of the blockchain industry since, as things stand, blockchains cannot communicate with one another and operate in silos.
Users cannot, for instance, utilize ether (ETH) on the Ethereum blockchain or Bitcoin (BTC) on the Ethereum blockchain. Therefore, if user X wishes to pay another user Y for something but Ethel only accepts ETH, X runs into a problem. Y cannot receive BTC from him directly. BTC cannot be transmitted straight to Ethel, but he can take further measures to purchase ETH or exchange some of his BTC for ETH. In contrast to fiat currencies and credit cards, which can be used with a variety of providers, this might be considered as a significant drawback.
Continue reading: https://www.indiatoday.in/cryptocurrency/story/explainer-what-is-a-blockchain-bridge-how-does-it-work-why-do-we-need-them-2004972-2022-09-26
What are blockchain bridges?
A tool created to address the issue of interoperability between blockchains is a blockchain bridge, sometimes referred to as a network bridge or a cross-chain bridge. Bridges are now an essential part of the blockchain industry since, as things stand, blockchains cannot communicate with one another and operate in silos.
Users cannot, for instance, utilize ether (ETH) on the Ethereum blockchain or Bitcoin (BTC) on the Ethereum blockchain. Therefore, if user X wishes to pay another user Y for something but Ethel only accepts ETH, X runs into a problem. Y cannot receive BTC from him directly. BTC cannot be transmitted straight to Ethel, but he can take further measures to purchase ETH or exchange some of his BTC for ETH. In contrast to fiat currencies and credit cards, which can be used with a variety of providers, this might be considered as a significant drawback.
Continue reading: https://www.indiatoday.in/cryptocurrency/story/explainer-what-is-a-blockchain-bridge-how-does-it-work-why-do-we-need-them-2004972-2022-09-26
