Interoperability between different siloed blockchains has been a major challenge in the crypto space. However, cross-chain crypto bridges are emerging as a powerful solution, enabling users to transfer digital assets and information seamlessly from one blockchain to another. In this guide, we’ll explore what crypto bridges are, how they work, the different types of crypto bridges, and the risks associated with them.
What are Cross-Chain Crypto Bridges?
Cross-chain crypto bridges, also known as blockchain bridges, are protocols that connect two or more blockchains, allowing for the transfer of assets and data between them. Think of a crypto bridge as a middleman that facilitates token transfers between two different and previously isolated blockchain ecosystems. This was not previously feasible for the average user.
Another relatable example of this is using SOL tokens on the BNB Chain. With a crypto bridge, you can bridge the native SOL token from the Solana blockchain to the BNB chain. Another popular application is moving BTC from the Bitcoin blockchain to the Ethereum blockchain, where it can be used in the form of Wrapped BTC (wBTC) or (cbBTC) for various DeFi applications and to earn extra yield.
While we at CoinSutra have discussed the concept of cross-chain crypto bridges for years, it’s only recently that they have become ready for mass adoption. The rise of popular blockchains like Solana, Arbitrum, and Avalanche, which have captured significant market share, has increased the demand for applications that enable cross-chain bridging.
How Do Cross-Chain Bridges Work?
A cross-chain crypto bridge typically works by locking the native token of a blockchain in a smart contract and then minting a corresponding wrapped token on the target blockchain. For instance, if you want to move BTC from the Bitcoin blockchain to the Ethereum blockchain, the original BTC is locked in a smart contract on the Bitcoin network. The cross-chain bridge application then mints an equivalent amount of Wrapped BTC (wBTC) on the Ethereum blockchain. You can then use this wBTC freely within the Ethereum ecosystem. Anytime a user holding wBTC wants to convert it back to BTC, they can use the crypto bridge to do so.
Note: It is important to use the trusted crypto bridges and ensure if you are minting a token on another blockchain, it is widely accepted. Be especially careful with top cryptocurrencies like Bitcoin, Ethereum and so on.
If you’ve been in the crypto space for a while, you might have used a centralized exchange like Binance, Bybit or Kraken to move your USDT freely between different blockchains. On these exchanges, you can deposit or withdraw USDT on multiple blockchains. However, as DeFi becomes more user-friendly, many users prefer not to interact with centralized exchanges for blockchain bridging.
Thanks to technological advancements, there are now many high-quality and near-instant cross-chain crypto bridges that allows you to bridge tokens from one blockchain to another with lower fees than a centralized exchange. Seriously, way lower fees than using a centralized exchange.
Types of Crypto Bridges
There are three primary types of crypto bridges:
- Lock and Mint: In this model, a smart contract locks the native token on the source blockchain, and a corresponding wrapped token is minted on the destination blockchain. When you want to reverse the process, the wrapped token on the destination chain is burned to release the original token on the source chain.
- Burn and Mint: With this type of bridge, a user burns tokens on the source chain, and the bridge then mints new tokens on the destination chain. This is often used when a protocol decides to migrate its token to a new blockchain, allowing users to burn their existing tokens and mint new ones on the new chain.
- Lock and Unlock: In this model, no tokens are burned or minted. Instead, a token is locked on the source chain, which then unlocks the same native token on the destination chain. This method is commonly used to increase capital efficiency and attract new liquidity.
Crypto Bridge Hacks: A Major Challenge
While using any technology in the blockchain realm, it’s crucial to be aware of the risks. The biggest risk to any decentralized application is the hacking of its smart contracts. Decentralized crypto bridges are not immune to this, and numerous notable hacks have occurred in the past. Especially when this technology was nascent and protocols didn’t have enough funding for security audits, these hacks had a devastating impact on the crypto industry.
Chainalysis reported that by 2022, approximately $2 billion in cryptocurrency had been stolen across 13 separate cross-chain bridge hacks. The situation has not improved much since then. According to a 2024 Chainalysis report, a staggering $2.2 billion was stolen in crypto-related hacks in 2024 alone, with a significant portion of that coming from bridge exploits.
Here are some of the most significant crypto bridge hacks:
- Ronin Network: $625 Million Hack (March 2022)
- Wormhole: $326 Million Hack (February 2022)
- Nomad: $190 Million Exploit (August 2022)
- Binance Bridge: $100 Million Hack (October 2022)
- Harmony: $100 Million Hack (June 2022)
Bridge vs. Cross-Chain Swap: What’s the Difference?
It’s important to understand the distinction between a cross-chain bridge and a cross-chain swap. While a bridge simply transfers the same asset from one blockchain to another (e.g., ETH on Ethereum to WETH on Polygon), a cross-chain swap allows you to swap different assets across two blockchains in a single transaction (e.g., ETH on Ethereum to SOL on Solana).
Cross-chain swaps are generally faster, more convenient, and more cost-effective than using a bridge and then a decentralized exchange (DEX) to perform a swap.
EVM vs. Non-EVM Bridges
Crypto bridges can also be categorized based on the types of blockchains they connect: EVM (Ethereum Virtual Machine) and non-EVM.
- EVM-compatible chains include Ethereum, BNB Chain, Polygon, Avalanche, and Arbitrum. Bridges connecting these chains are generally easier to build due to their shared technical standards.
- Non-EVM chains include Bitcoin, Solana, Cosmos, and Polkadot. Bridges connecting EVM and non-EVM chains are more complex to develop as they need to reconcile different technical architectures.
The Rise of Bridge Aggregators
With the proliferation of crypto bridges, a new type of service has emerged: the bridge aggregator. Similar to how DEX aggregators find the best prices for token swaps, bridge aggregators search across multiple bridges to find the most efficient and cost-effective route for your cross-chain transfers. This saves you the time and effort of manually comparing different bridges and their fees.
Top Crypto bridges
We will do a deep dive into the top bridges for crypto in an upcoming article.
For now, here is a quick list of the top trusted crypto bridges with high volume.
- Portal bridge (formerly wormhole)
- deBridge finance
- Stargate
- Across
- Rango Exchange
Conclusion – Cross-chain crypto bridges for beginner
Cross-chain crypto bridges are a vital component of the evolving multi-chain landscape, enabling greater interoperability and liquidity across the crypto ecosystem. While the technology has faced significant security challenges, ongoing improvements and the emergence of bridge aggregators are making cross-chain transfers more secure and user-friendly. As the crypto space continues to expand, bridges will play an increasingly important role in connecting disparate blockchains and unlocking new possibilities for decentralized finance.
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What Are Crypto Bridges? A Complete Guide to Blockchain Interoperability was published on CoinSutra – Bitcoin Community
