What it is
Blockchains typically operate in isolation, meaning assets on one chain cannot natively move to another. Bridges create a pathway by locking tokens on the source chain and then minting an equivalent representation on the destination chain, or by using a network of validators to verify transactions across chains. This enables interoperability, allowing users to access different ecosystems and applications.
Cross-chain bridges are crucial for expanding the reach of decentralized finance (DeFi) beyond single blockchains like Ethereum, facilitating asset movement to layer-2 solutions and other layer-1 networks. News frequently reports on new bridge launches, security vulnerabilities (which have led to significant hacks), or improvements in bridge technology. Retail investors use bridges to move assets between chains, but must be aware of the inherent security risks and potential for exploits.
Why it matters
Bridges enable asset transfers between different blockchains, but they are complex systems that carry substantial security risks for users.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice