In the world of blockchains, where different networks operate independently from one another, cross-chain technologies play a key role in ensuring compatibility and interaction between these systems. As blockchain technology has developed, users have faced problems related to transferring assets between different networks. Each blockchain has its own unique protocols, tokens, and smart contracts, which makes direct interaction between them difficult. Blockchain bridges help solve this problem by creating an interconnected network in which assets and data can move freely between different blockchains.

Cross-chain bridges, or blockchain bridges, are specialized mechanisms designed to transfer assets and information between different blockchains. In the decentralized space, blockchains exist like islands or separate states, operating within their own ecosystems and rules, and initially developers did not focus on standardization or network compatibility. As the number of projects in the decentralized space grew, this issue became critical.

Blockchain bridges allow you to:
Transfer tokens and assets: For example, you can move Bitcoin to the Ethereum network without selling it, by converting it into wrapped tokens compatible with Ethereum. Or you can easily send USDT tokens from the Optimism blockchain to Arbitrum.
Access new protocols: Users can interact with various DeFi services and dApps on other blockchains.

How Cross-Chain Bridges Work
Cross-chain bridges operate using several key components:
Smart contracts: Self-executing contracts that manage the process of transferring assets and data. Smart contracts ensure secure and transparent execution of all operations.

• Oracles: Services that provide external data to smart contracts. Oracles help verify and confirm the information required to transfer assets between blockchains.

The main function of blockchain bridges is to transfer assets between different networks. For example, if you want to move your Bitcoin (BTC) to the Ethereum network, traditionally you would need to sell BTC and buy ETH, which involves transaction fees and possible price volatility.

Blockchain bridges allow you to avoid this process. Instead of selling, the bridge locks your BTC in a smart contract and issues an equivalent amount of wrapped Bitcoin (Wrapped BTC, WBTC) on the Ethereum network. A wrapped token is a tokenized version of the original cryptocurrency that is pegged to the value of the underlying asset and can be converted back when needed.

Example of using a bridge:

• You select the source chain and the transfer amount.
• You deposit cryptocurrency to the specified address.
• You receive an equivalent amount of wrapped tokens on the target blockchain.
• For a reverse transfer, the process is similar.

When trying to transfer coins from one blockchain to another, you may encounter imbalance, where a large portion of your coins goes toward fees. This is especially noticeable with small amounts. The transfer fee becomes less significant when you move larger sums.
Please note that the bridge fee is fixed regardless of the transaction size. This makes using bridges unprofitable for small transactions. However, different bridges have different fee structures.
Instead of using a bridge, you can transfer your coins to a centralized exchange, pay the network fee, and then pay the exchange fee.