How it works
Some bridges lock assets on one chain and mint a representation on another, while others use liquidity or message-passing systems.
What to check
Check who controls the bridge, how messages are verified, whether assets are wrapped and what happens if one chain or validator set fails.
- Identify custody model
- Check message verification
- Understand wrapped-asset risk
Limits and risks
Bridges concentrate technical risk because they connect multiple systems. Many large crypto losses have involved compromised bridge contracts or validator keys.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.