A bridge is a protocol that connects two different blockchains, enabling the transfer of assets, data, and tokens between them. Bridges are critical infrastructure for cross-chain interoperability, allowing users to move assets from one chain to another without going through a centralized exchange. They work by locking tokens on the source chain and minting equivalent wrapped tokens on the destination chain. However, bridges have been frequent targets of exploits and hacks, making their security a major concern in the DeFi ecosystem.
Example
“She used a bridge to transfer her USDC from Ethereum to Arbitrum, reducing her transaction fees from $15 to less than $0.10.”