Altcoins News
By Dan Saada
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Patrick McCorry, In-house Professor @ Infura, has clarified the misconceptions on the security models for locking funds in one blockchain and representing funds in another…
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He has put together a small note to distinguish the bridges, side chains, and layer-2 protocols – worth noting.
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For clarity, a bridge does the job of holding assets on the layer-1 blockchain. The same assets are released on another (an external) service.
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When a layer-1 blockchain like Ethereum connects to any other system, an Ethereum bridge is used in the process.
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The role of the bridge: A user can deposit funds into the bridge. And the representation of the assets will be issued on another system.
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The user will be able to withdraw their assets from the bridge equivalent to the value of the token stored in another blockchain.
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Other types of bridges like multi-organization bridge and crypto-economic bridge are also in use.
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It is only the custodian who will be able to verify if the fund balances in other blockchains are correct when they are burned or if the liabilities are more than the assets in…
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A bridge is a general consideration when it comes to onboarding custodial services. Also, a bridge is used to connect one blockchain to another.
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In a layer-2 bridge, it is possible to move funds from the Layer-1 blockchain to another off-chain system.
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Concluding, the layer-1 blockchain has custody of the funds, and the bridge must be convinced the layer-2 protocol is not compromised.
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