Cross-Chain Interoperability and Blockchain Bridges
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Blockchain bridges are the primary technology that facilitates cross-chain interoperability. A blockchain bridge is a protocol that connects two or more blockchains, enabling them to interact and transfer data and assets securely
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How Do Blockchain Bridges Work? The process of transferring assets across a blockchain bridge generally follows these steps: Locking Assets: When a user wants to transfer an asset from Blockchain A to Blockchain B, they send the asset to the bridge contract on Blockchain A. The bridge contract locks the asset, holding it in reserve on the source blockchain. Minting Equivalent Tokens: Once the asset is locked on Blockchain A, the bridge mints an equivalent amount of tokens on Blockchain B. These “wrapped” tokens are pegged to the original asset’s value. Cross-Chain Interaction: The user now has a representation of their asset on Blockchain B and can use it within that ecosystem as they would any native token. Redeeming and Unlocking: If the user wants to return the asset to Blockchain A, they send their wrapped token back to the bridge on Blockchain B. The bridge contract will then burn the wrapped token on Blockchain B and release the original asset from reserve on Blockchain A. This lock-and-mint process ensures that the total supply of assets remains consistent across chains, preventing issues like double-spending and inflation of the asset.
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