Hey All,
Bridging crypto tokens is a famous term that is used in Blockchain projects. Or rather I must is that in the Crypto verse bridging tokens from one blockchain to another is pretty common and it is mainly done via the Bridge. Lets take an example where a user wants to move their funds from Aribitrum Network to Fantom Blockchain.
Here we are leveraging the Bridge which is on Firebird Finance App that allows to transfer tokens from one chain to the other. I have used this token bridge in past to bridge over the $FBA tokens to Aribitrum Network - where I has staked all my $FBA tokens to earn the governance token which is $FBADAO of Firebird chain. Getting back to our example of token bridge and as seen in the above image one is trying to bridge over 500 tokens of Aribitrum to Fantom Network where the user is going to get 500 $FBA tokens. Plus there is a fees to be paid for using the bridge services. At sometimes bridge services are or FREE chances a minimal. But for the most of the time a minimal fees has to be borne by the user who is leveraging the bridge services. And in our example here one would need to shed close to 0.00018 ETH which is equivalent to less than half a dollar at the current price of $ETH.
Bridges Reliability? In question...
The other important thing to keep in mind, while using bridge services is - who reliable are the bridges? This is an important factor to consider when you are trying to use a bridge service. If incase you are not sure about the Bridges Reliability; its recommend to leverage a dex or a cex instead rather then a bridge. Also incase you decide to rely on the bridge then first give it a try with a smaller amount of tokens to be transferred and see the funds arrived to the destination safely. This way you can make sure that a bridge doesn't has a problem and that you can rely on it somewhat before transferring the entire tokens via the bridge. So far I have made use of many bridge services and didn't land into any trouble it had been a smooth transfer of funds from one chain to other.
There are many types of bridges but this post is not going into the details of them.
- Cross-chain bridges
- Sidechain bridges
- Federated bridges
- Hashed timelock contracts (HTLCs)
- Programmable token bridges
- Trust-minimized bridges
Depending on the nature of the bridge and the use case select the bridge as per your need. Most of the time, I guess we rely on the Programmable token bridges for transferring our tokens from one bridge to another. On a end note, I would say bridging tokens from one Blockchain to another is very valuable tool as it helps the users to connect to different blockchain networks and ultimately aids in facilitating the exchange of assets and information between them.
What is a Token Bridge? In Simple terms with an example...
Have Your Say on Bridge Tokens?
Are you familiar with the Bridging tokens? Do you rely of these bridges which bridge tokens? what is a crypto token bridge? Would love to hear your thoughts around it in the comment box below? Cheers...
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Image Credits:: image editing via pro canva license, coindesk
Best Regards