What are Crypto Bridges?
There are many different crypto tokens and most exist on their own Blockchains. It works exactly as it sounds: a bridge allows tokens to transfer between two different blockchains.
Picture Blockchains as a group of islands. Normally, each user can only transfer tokens to other users on their own island. A bridge can connect them.
Do tokens actually move across bridges?
No, they don’t! Instead, they are locked up on one chain and an “IOU” with the same value is given to the user on the other. Users can trade their IOUs on the second blockchain exactly as they would with the original token.
To transfer back, they simply redeem the IOU. The original tokens are released to them on the original chain. That is: if the bridge still has funds to repay the IOUs!
Hackers love bridges because bridges can have a huge amount of funds locked up. Hackers often only have to compromise a few individuals to fake IOUs and steal all of the locked-up tokens.
See this TikTok video from the ease team to learn more:
What is a#crypto bridge? #learnontiktok #learnwithtiktok #cryptocurrency #blockchain #hack #tech
There have been some damn interesting bridge hacks recently, check out our last video to learn about the largest one ever!
Biggest hack in #crypto EVER! #learnontiktok#cryprocurrency #cryptonews #cryptok #axieinfinity
Read more info about the recent hacks of bridges and the risks of using them here on the Washington Post.
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