Bridge (Crypto)
A bridge allows you to transfer assets between different blockchains. It locks your tokens on one chain and mints equivalent tokens on another.
Understanding the Concept
Each blockchain is a closed system. Your ETH on Ethereum can't natively exist on Solana. Bridges solve this by creating "wrapped" versions of assets across chains. This unlocks DeFi opportunities—you can use your ETH as collateral on Avalanche or trade on Arbitrum's cheaper fees. But bridges are risky. They're honeypots holding billions in locked assets, making them prime hacking targets. The Ronin Bridge lost $600M. Wormhole lost $320M. Always use established bridges, limit exposure, and consider the smart contract risk. Some chains have native bridges; third-party bridges often offer better rates but more risk.
Real-World Example
You have 10 ETH on Ethereum but want to use Arbitrum for cheaper gas. You use the Arbitrum Bridge to lock your ETH on Ethereum and receive 10 ETH on Arbitrum. When you want to return, you reverse the process.
How Strykr Helps
Strykr tracks Bridge developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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