Blockchain bridges also referred to as cross-chain bridges, are the connection that allows the transfer of tokens or arbitrary data from one chain to another. Blockchain bridges can do many things, but token transfer is the most common utility. Since its inception, one of the biggest problems of blockchain technology is the inability to work together. While they are very fluid and somewhat efficient as single entities, each blockchain is limited by the walls of its domain.
Bridges can be created through smart contracts, bridge pallets for substrates, or higher order protocols. Your typical bridge designs will have several components, including monitors, message passing, consensus, and signing. The monitoring components are usually actors that monitor the state of the source chain. They can either be an oracle, validator, or relayer.
Lastly, actors need to sign information sent to the destination chain cryptographically. This can be done individually or as part of a threshold signature scheme.Bridges come in different types but can be categorized into two; centralized bridges, trusted or federated, and decentralized, trustless. Bridges exchange information either locally or remotely. Local bridges are different layers, protocols, and tools within a single blockchain, while remote bridges are separate blockchain ecosystems. In addition, blockchain bridges can also be categorized based on other factors, including how they work, security, speed, connectivity, capital efficiency, and statefulness.
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