What is a Bridge?
Defining a Bridge
As the world of blockchain becomes more complex, it is important to make sure that there is a common connection that allows for interoperability between different networks.
Bridges make it possible to transfer assets between different networks in a trust minimized manner. Different chains and scaling solutions have different consensus mechanisms and specifications, but bridges create the synergy needed to create a diverse range of decentralized solutions that can interact with each other.
Benefits of using a Bridge
By allowing users to move their assets to different networks, bridges allow for interaction with a wider range of assets and farming opportunities. In addition, other systems offer more scalability or more throughput and thus allow users to transact with lower transaction fees.
Layer 2 vs Sidechain
With the ever-expanding number of different blockchain systems, the main two categories that these systems tend to fall under are either Layer 2s or sidechains.
Layer 2: Layer 2 scaling solutions that are built directly on top of a blockchain and inherit some of the security benefits and decentralization while gaining faster speed.
Sidechain: Sidechains are independent blockchains with their own consensus mechanisms as well as nodes.