Why do some people prefer a bridge over an exchange?

There are four major reasons some prefer bridges to exchanges. Cost. The process of swapping on an exchange, then sending to another wallet can incur some significant amount of fees. On the other hand, the fees could have been incurred once and for all in a single bridge.

How does a cross-chain bridge work?

There are two ways bridges carry out asset transfer: wrapped assets or liquidity pool. The owner of a native asset of Blockchain A can receive the equivalent of the same asset in Blockchain B. To put it in perspective, a user can pass through a cross-chain bridge SOL on Solana to get an equivalent of Wrapped ETH on Ethereum.

What is a blockchain bridge?

Just as a physical bridge connects two physical locations, a blockchain bridge connects two blockchain ecosystems. Bridges facilitate communication between blockchains through the transfer of information and assets. You're from the USA and are planning a trip to Europe. You have USD, but you need EUR to spend.

What is a cryptocurrency bridge?

A bridge lets you convert your Bitcoin to Wrapped Bitcoin, a token that’s widely used in DeFi apps. Or, you can move your ETH from the Ethereum chain to the Polygon chain, another widely used network. You get the idea: You can use Crypto A on Network B. Bridging is often less expensive than selling your crypto.