Bridges

Within the blockchain space, bridges refer to the conduit through which value can be transferred between two blockchain ecosystems. These bridges are fundamental to enabling flows of information and tokens between blockchains. Due to the structural differences between L1s, they are not able to inherently communicate with other ecosystems. This is why bridges are fundamental to connecting and growing blockchains and ultimately the monetary system in which they create.

There are a variety of ways to classify the different types of bridges based on their internal mechanisms, ways of reaching consensus and the function in which they serve. As there are a multitude of ways to differentiate bridges, each bridge will incorporate multiple classifications. Some examples of bridge classification are:

One-way (unidirectional) bridge - A general distinction of bridges, meaning users can only bridge assets to one destination blockchain but not back to its native blockchain.

Two-way (bidirectional) bridge - As opposed to one-way bridges, two-way bridges will allow asset bridging in both directions.

Custodial bridge - Require users to place their trust in a central entity to properly and safely operate the system.

Non-custodial bridge - Operate in a decentralised manner, relying on smart contracts to manage the crypto locking and minting processes, removing the need to trust a bridge operator.

Multichain bridge - Exchange many tokens in a large number of networks. Multichain crypto bridges can also interact with many cryptocurrency wallets.