Understanding Cryptocurrency Bridges
Cross blockchain trading currently depends on bridges
-
Cross blockchain trading makes def possible.
-
But cryptocurrency tokens cannot actually move from one blockchain to another.
-
Bridges don't transfer tokens, they transfer the value of the tokens.
-
This transfer involves a trusted middleman, the bridge.
-
Bridges are therefore trusted, not trustless.
-
Bridges are therefore a point of weakness or vulnerability, which can be exploited.
-
Bridges are therefore not part of the decentralization dogma of trustless code, as they involve trusted humans.
-
There is one thing about the blockchain, and that is we always come back to basics.
-
Just like in that Book entitled All I need to know abot life I learned in Kindergarten. All you need to learn about the blockchain is contained in Blockchain 101.
-
If you view cryptocurrency through this lens you will be ahead of most, and be able to understand things better.
Posted Using LeoFinance Beta