What is Bridging in Crypto?

The world of crypto is expanding. However, there are a number of blockchains that work independently and have their consensus mechanisms and rules, causing issues of interoperability. Crypto bridging is a process that allows users to transfer assets and data across various blockchain networks. This not only resolves the issues of interoperability between blockchains but also enhances liquidity and provides various other benefits.

A crypto bridge connects different blockchains just like a highway connects two different cities. With the help of a cross-chain bridge, users can move their digital assets to other networks conveniently to other chains. Continue reading for more details, as we will cover everything you want to know about crypto bridging in this blog.

What Does Bridging Crypto Mean?

When we talk about bridging crypto, we refer to the process of transferring cryptocurrencies or tokens from one blockchain to another. Each blockchain, such as Ethereum, Binance Smart Chain, or Solana, has its infrastructure and protocols. Since these blockchains are typically not compatible with one another, bridges serve as intermediaries that facilitate cross-chain transfers.

For example, if you hold an Ethereum token on the Ethereum blockchain but want to use it on the Binance Smart Chain, you can do that by using a bridge to transfer your Ethereum token into an equivalent token on the Binance Smart Chain. It will be called Wrapped Ethereum.

Now, let’s discuss how it works. 

How Does Crypto Bridging Work?

There are two main mechanisms in crypto bridging that you can use to perform transactions across networks.

Lock-and-Mint Process 

• In this process, the original tokens are securely locked in the smart contracts of blockchain A.
• The same amount of wrapped tokens are created or minted on Blockchain B, where you want to use the tokens
• However, if you want to return your tokens to Blockchain A, the wrapped tokens will be burnt, and the original tokens on Blockchain A will be released for use.  

Burn-and-Mint 

• This process involves the burning or destruction of original tokens on blockchain A, which is the source chain.
• Same number of tokens will be created or minted on the destination chain.

Both of these crypto-bridging processes are used to ensure the conservation of the total supply of tokens. However, different types of cross-chain bridges are used in different cases. Let’s understand them in detail.

Types of Crypto Bridges 

Here, we have four main types of crypto bridges, providing centralized and decentralized solutions. 

1. Trusted Bridges 

Centralized platforms operate these bridges. This means you need to rely on a third party to manage the transfer of your assets. Although these bridges are usually quick and user-friendly, they come with a drawback of centralization. 

2. Trustless Bridges 

In contrast to trusted bridges, trustless bridges are completely decentralized. They do not need a central authority; rather, they use smart contracts and blockchain to perform transactions. As the process is transparent, independent, and secure, you don’t have to trust a third party to execute transactions.

3. Unidirectional Bridges 

As the name suggests, unidirectional bridges are used to perform transactions only in one direction. They are usually used in blockchains to convert tokens into their wrapped forms. Wrapped Bitcoin is one example that allows Bitcoin to be converted into an Ethereum-based token.

4. Bidirectional Bridges 

Using these bridges, you can perform transactions in both directions. Users can move their tokens back and forth between two blockchains.

Benefits of Crypto Bridging

Crypto bridging provides many benefits to blockchain users and developers, including:

• Bridges allow different blockchains to communicate and share assets that increase usability and interoperability.
• Some blockchains, like Ethereum, have high gas fees. Users can cut their costs by using low-cost networks such as Polygon and Solana.
• Sometimes, due to overload on blockchains, their transaction speeds slow down. In this case, bridges can help provide access to faster networks.

Disadvantages of Cross-Chain Bridging

Despite countless benefits, the challenges of cross-chain bridging cannot be ignored at the same time.

• Security issues are the most prominent issues in multi-chain transactions, as bridges are easy targets for hackers due to their vulnerabilities in smart contracts.
• Liquidity pools are required to transfer assets using bridges. Hence, low liquidity can lead to delays or even slippage.
• Some bridges rely on centralized platforms that can create a single point of failure.

After understanding the basics of cross-chain bridging, let’s learn what this ARMswap bridging method is and how efficiently it can support transactions across multiple platforms

ARMswap Bridging Method 

The ARMswap bridging method was designed for the convenience of users looking to perform seamless transactions across various blockchains. ARMswap is a decentralized cross-chain bridging platform. It’s not only highly efficient but also very cost-effective. Here are the details of why ARMswap’s bridging solutions stand out among other platforms. 

ARMswap offers support across 31 blockchains, including major chains like Ethereum, Binance Smart Chain, and Polygon. It also plans to increase the number of supported chains to 51 in the near future. However, some of its competitors, such as Chainport, support 29 chains, while Uniswap can transfer assets across 12 networks, and Pnacakeswap has only 9 supported chains. With the largest number of supported chains among these competitors, ARMswap benefits its users by reducing the gaps between networks. 

To ensure the security of their user's transactions, ARMswap uses Hardware Security Modules. These physical devices operate independently and ensure the safety of transactions across the ecosystem. HSM devices secure the cryptographic keys and important data from unauthorized authorities. The integration of these devices not only enhances the security of digital data but also prevents fraud and protects the integrity of multi-chain activities. 

Moreover, experts have designed a very simple and user-friendly interface that everyone can use easily. It provides clear guidance for every step, and users can enjoy effortless transfers. 

All of these features make ARMswap an ideal option for users looking for secure and seamless multi-chain solutions.

Conclusion

Crypto bridging has completely changed the way we interact with different blockchain networks. It not only provides more flexible options but also at very affordable rates. Despite issues of liquidity and security, solutions like the ARMswap bridging method are making the lives of users easier. Bridges are playing their role in the blockchain industry and paving the way for an interconnected Web3 ecosystem.