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There are generally four different bridge types:
- Native Bridges: These bridges connect two blockchains, supporting basic functions like token transfers. An example of a native bridge is the Ethereum Arbitrum bridge, connecting Arbitrum to Ethereum.
- Validator or Oracle-based bridges: This type relies on an “external validator set or Oracles to validate cross-chain transfers.”
- Generalized message passing bridges: These bridges simply transfer things like assets, messages, and arbitrary data across chains.
- Liquidity networks: This type of bridge transfers assets through atomic swaps. Atomic swaps, mentioned in the previous article, are when assets are swapped with a third party.
The two categories of Bridges:
- This type of Bridge is verified externally, meaning that validators verify the bridge. These types of bridges usually come with some good advantages, like speed or cost-effectiveness. However, there is one major downside to this type of bridge: the fact that its security is in question, mostly because it is verified externally.
- Trustless: This type of bridge relies on the Blockchain. Their trustlessness comes from the fact that they don’t rely on anything other than the blockchain, so there are no third parties or external validators, and trustlessness here means that one doesn’t need to doubt the bridge. Therefore, these bridges are considered to be secure, yet they may not have the same advantages as trustless bridges do.
The Risks of Using Bridges:
- Smart Contract Risk: A flaw in a smart contract may lead to it being exposed to hacks.
- Counterparty Risk: Many bridges use a trusted model where validators verify the bridge, but it is possible that these validators may collaborate to steal funds or engage in other malicious activities.
- Open Issues: There are still aspects of Bridges that are unknown, meaning that at certain critical times, such as congested networks or hacks, the response of these bridges is not known. Therefore, there is much more to learn about the concept of Bridges.
If you want to learn more, check out the links below:
Blockchain bridges
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