What is cross chain in blockchain?

What is Cross Chain? Cross-chain is a technology that enables the interconnection between blockchain networks by allowing the exchange of information and value. Blockchain are decentralized distributed ledgers, and different blockchains correspond to different distributed ledgers. For example, Bitcoin and Ethereum are two different blockchains.

What is a cross-Chain Bridge and how does it work?

A cross-chain bridge enables an exchange of information, cryptocurrency or NFTs from one blockchain network to another. It enables the flow of data and tokens across what would otherwise be siloed sets of data on different blockchains.

What is the importance of cross-chain trading?

That is, compared to the original chain, the information from another chain is considered external information, so cross chain should ensure that the external information received is correct. 2. Cross-chain trading should ensure the total amount of tokens on the chain will not increase or decrease after the cross-chain mechanism is enabled.

Are cross-chain bridges a target for hackers?

Cross-chain bridges can also be a lucrative target for hackers. In February 2022, cross-chain bridge platform Wormhole was the victim of an attack in which the threat actor stole 120,000 wrapped Ethereum tokens -- worth an estimated $320 million at the time of the theft. Learn more about how cryptocurrency cyber attacks are on the rise.