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<p>Each blockchain has its own specific rules, as well as different programming languages and consensus protocols. This creates a problem of interoperability between different blockchains. As the number of blockchain protocols increases, the need to move assets between them also grows. This need is exactly what bridges address.</p><h2 id="header-0">What is “bridging in crypto” or, in simple terms, what is a blockchain bridge?</h2><p>A cross blockchain bridge is a tool (more specifically, a protocol) that connects two blockchains, allowing a user to transfer cryptocurrency from one blockchain to another. That is, if you want to trade bitcoin like Ethereum, the bridge allows you to do so without spending extra time or money. Token transfer is the most common way to leverate a cross-chain bridge.</p><p><em>For example, you want to send bitcoin to the Ethereum network.</em></p><p><em>Solution №1.</em> You can choose the traditional way: sell bitcoin (BTC) and then buy ether (ETH). But you will end up paying more transaction fees, which could have been avoided.</p><p><em>Solution №2. </em>You can choose a more effective way: use a multichain bridge to transfer quickly and conveniently.</p><h2 id="header-1">How blockchain bridge works</h2><p>When you transfer e.g. 1 BTC to Ethereum, a blockchain bridge &#34;freezes&#34; (aka &#34;locks&#34; in a smart contract) your 1 BTC and creates an equivalent amount of WBTC for Ethereum. WBTC is your bitcoin, but wrapped in the ERC20 token standard to become compatible with the Ethereum network.</p><p>In fact, bridges have roughly the following working algorithm:</p><ol><li>You pick a starting chain and the one you want to link to (from-to).</li><li>You specify the amount to be transferred.</li><li>Then you deposit cryptocurrency to the address generated by the bridge and wait for a little while.</li><li>The bridge will send you the equivalent amount of wrapped tokens.</li></ol><p>The reverse process is the same.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/da11d508290a4ff5870e95df1242985a.png" /></p><h3 id="bridge-types">Bridge types</h3><p>There are two main types:</p><ul><li><strong>Trusted</strong></li></ul><p>When sending coins over a bridge, users have no control over their crypto assets. A third party is responsible for managing them, as on centralized exchanges.</p><ul><li><strong>Trustless</strong></li></ul><p>Users have full control of their funds. A smart contract and algorithm are technically in charge of your assent management, as on decentralized exchanges.</p><h2 id="header-2">Blockchain bridge benefits</h2><p>➕ Seamless transfer of assets between different blockchains.</p><p>➕ Access of dApps to the capabilities of other blockchains, allowing users to enjoy the benefits of various systems.</p><p>➕ Smooth interaction between developers from different blockchain environments.</p><h2 id="header-3">Risks of bridge usage</h2><p>In 2022, <a href="https://www.cnbc.com/2022/08/10/hackers-have-stolen-1point4-billion-this-year-using-crypto-bridges.html" rel="noopener noreferrer nofollow">a total of about $1.4 billion has been lost</a> as a result of bridge failures.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/c0b75d054ff1418c82335cd6f82de5cd.png" /></p><p><em>Source: <a href="https://www.cnbc.com/2022/08/10/hackers-have-stolen-1point4-billion-this-year-using-crypto-bridges.html" rel="noopener noreferrer nofollow">CNBC</a><br /><br />Even the best crypto bridges (both trusted and trustless) carry a certain degree of risk. For example, a third party in the case of a trusted bridge can theoretically steal the coins you send. At the same time, hackers can break into a smart contract in the case of a trustless bridge and your coins can also be at risk.</em><br /></p><h2 id="header-4">Follow official OneArt channels to find the latest info and updates:</h2><ul><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://coinmarketcap.com/community/profile/OneArt" rel="noopener noreferrer nofollow">CoinMarketCap Community</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li></ul>

Blockchain Bridge Explained: What is It and How Does It Work?

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