Before we go into full details about a few famous crypto bridges, let’s explore the factors which resulted in the development of blockchain or crypto bridges. The blockchain space continues growing with smart contracts and decentralized applications operating across various blockchain networks, each with a special approach to an effective network. However, this development has brought interoperability issues to the overall ecosystem. Because native blockchains are built independently, users cannot perform cross-chain transactions.

For example, native Bitcoin (BTC) is not supported on the Ethereum network, and conversely, native Ether (ETH) isn’t allowed on the Bitcoin network. Therefore, users of these networks work independently and can’t interact with each other on-chain. Crypto bridges essentially solve these issues. This guide will highlight how some popular crypto bridges work.

What is a Crypto Bridge?

Crypto or blockchain bridges are infrastructure protocols connecting two independent blockchain networks, enabling easy communication between them, thus improving interoperability.

In other words, crypto bridges link two blockchains and allow users to transact cryptocurrency from one chain to the other. Meaning, if you have Ethereum but want to convert it to Solana, crypto bridges can make that happen. Moreover, the bridges also allow easy transfer of smart contracts, data exchanges and other feedback between two isolated platforms.

Crypto bridges are pretty comparable to layer 2 solutions; the only difference is that layer 2 protocols are hosted on an existing blockchain to improve scalability while still lacking interoperability. However, crypto or cross-chain bridges don’t belong to any blockchain.

3 widely-known blockchain bridges

The discussion on top crypto bridges might not be fully understood without pointing to some popular blockchain bridges. Therefore, here is a short list of the numerous renowned crypto bridges in use right now.

1. Polygon Bridge

This cross-chain protocol allows users to transfer assets between Polygon and Ethereum. Interestingly, they can move their ERC-20 tokens and Ethereum NFTs to the Polygon layer-2 chains through both Polygon (POS) bridge and the Plasma bridge.

Although distinct, these two bridges can exchange crypto assets from the Ethereum network. Polygon bridge POS essentially uses proof-of-stake (PoS) to secure its network and allows easy transfer of ETH and ERC tokens. Alternatively, the Plasma Bridge uses Ethereum plasma scaling solution and allows seamless transfer of Ether (ETH), ERC-20 tokens, ERC-721 tokens, and Polygon (MATIC).

2. Polkadot

Polkadot is another blockchain protocol that facilitates the transfer of crypto assets and decentralized apps (dApps) between various blockchains. The platform uses “parachains,” or different blockchains linked to the Polkadot network, to allow easy transactions of assets. These chains work together and ease the movement of digital assets across the Polkadot network’s chains.

3. Cosmos

Cosmos is a network of independent blockchains. The Cosmos Hub makes it easy to move crypto assets within several blockchains in the Cosmos ecosystem. The platforms employ unique accounts holding the transferring assets to make this happen. These special accounts are usually called Pegs.

Wrapping Up

Crypto or Blockchain bridges like Cosmos, Polkadot, Ethereum etc., can enable seamless interaction, including data exchange and transfer of digital assets between two blockchains. They also facilitate different Dapps interactions, off-chain information and decentralized identities. However, some risks, such as bugs, hacks, etc., can affect a crypto bridge. Therefore, it is essential to do your personal research and review the risks associated with crypto bridges before using one.