Explanation
Bridges have historically been one of the largest sources of loss in crypto, because a lot of value sits in a single contract. Always check that you are on the official bridge.
How a bridge works
Most bridges lock your assets on one side and mint a backed version on the other. To return, that version is burned and the original released. The whole model hinges on who controls those locks: a smart contract, a validator group or a single company.
The weakest link
Bridges have for years been the largest source of losses in crypto, with individual incidents in the hundreds of millions. The reason is simple: one place holds an enormous pot of money guarded by software. Use official bridges, move in smaller steps and leave nothing in a bridge contract longer than needed.
Key takeaways
- Only use official bridges.
- Move in steps, not everything at once.
- Wrapped tokens are not originals.
Frequently asked questions
+What happens if a bridge is hacked?
The wrapped tokens on the other side lose their backing and collapse, even if you did nothing wrong. Recovery depends entirely on the team behind it.