🌉 Bridges in blockchain: what are they and why are they very important?
There are many different blockchain systems out there. Each of them features custom technologies: smart contracts, principles for confirming transactions, and other characteristics.
The developers who create their apps on the blockchain are tied to the “native” network and its features by default. Such “isolation” greatly complicates project development and scaling. Bridges in Blockchain were created to solve this very problem.
📡 What is a bridge?
A bridge is a special app operating on the principle of cross-chain connection. It ensures transactions and, as a result, transmission of tokens between different blockchains.
🧩 Why are bridges important?
Bridges allow project developers to use not only the advantages of the “native” blockchain, but also the advantages of another associated system using a cross-chain bridge. Besides, bridges enable “migration” of capital from other networks and attract new audience.
🌐 How do Blockchain bridges work?
Most cross-chain bridges are built on the implementations of the “Mint and Burn” principle. In this way, when the token transfers from one network to another, it is blocked or “burned” in the former. At the same time, an additional emission of a “wrapped” coin is held in the second blockchain.
Such tokens are equivalents of “original” cryptocurrencies in other blockchains, and their value is backed by frozen assets.
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