Key takeaways
- Crypto bridges allow different blockchain networks to communicate with one another and exchange assets and information.
- Crypto bridges circumvent the need to send funds through centralized exchanges in order to use different networks.
- With Phantom’s Cross-Chain Swapper, you can easily bridge your crypto assets between Ethereum, Polygon, and Solana without ever leaving your wallet.
Web3’s decentralized nature has led to the emergence of many distinctblockchains andapplications.For example, you can use decentralized finance (DeFi) applications onEthereum, trade NFTs onSolana, or explorePolygon’s rapidly growingecosystem.However, these blockchains are independent of each other, i.e., they can’t talk to each other. That's where bridges come in. Just like you exchange money while traveling to different countries, blockchain bridges allow you to transfer assets across various blockchains. Crypto bridges are the key to a connected, decentralized future, where assets and data flow freely across different platforms.
In this article, we’ll explain what bridges are, how they work, and how you can get started.
What are crypto bridges?
Crypto bridges are essentially software protocols that enable communication and interaction between different blockchains. Think of it as similar to building a bridge between two islands so people can travel back and forth. Crypto bridges allow two different blockchain networks to share information and work together.
Crypto bridges work by establishing a connection between two different blockchain networks, allowing the transfer of assets and data between them. They do this by maintaining unified liquidity pools and unique resource balancing algorithms. These liquidity pools have native assets linked to all chains at the same time, allowing for efficient swaps.
With crypto bridges, you can directly transfer your assets cross-chain with a few clicks. This helps you avoid the traditional process of sending assets to a centralized exchange, trading them for another asset and then withdrawing the asset.
Crypto bridges, thus, eliminate any potential transaction delays and the need for trusting a centralized exchange. Further, since centralized exchanges typically charge a percentage of your assets to trade on them, you will also likely save on fees while using a decentralized bridge.
Accessing other blockchains and ecosystems
Crypto bridges provide a gateway to explore different blockchain ecosystems. This is especially useful when chains like Ethereum become congested due to high user activity. With bridges, you can simply move your assets to another network like Solana. By bridging your assets to Solana, you can take advantage of the lower transaction costs and faster transaction speeds. For instance, you can use decentralized apps (dapps), like Jupiter or Raydium on Solana instead of Ethereum after bridging your assets. This allows you to participate in DeFi activities, such as staking, liquidity provision, and trading, at a reduced cost compared to the Ethereum network.
Seamless bridging with Cross-Chain Swapper
With our new Cross-Chain Swapper, you can bridge tokens across Solana, Ethereum, and Polygon right in your Phantom wallet. Here’s everything to love:
Bridge with ease: Transfer tokens across chains without going to centralized exchanges or using complex bridges.
Get the best deal every time: With optimized performance features, you get the best bridge route every time. Choose “Best Return” or “Fastest” transfer based on your needs in the moment.
Stay informed: See estimated transaction time and cost, for every bridge option, so you always know the status of your funds.
Enjoy peace of mind: With our set of trusted providers, you can bridge with confidence and without worry.
Transact instantly with Refuel: Cross-Chain Swapper allows you to Refuel, so you can transact as soon as you bridge. A portion of your transfer will arrive on the destination chain as native tokens. No more getting stuck on a new chain without gas!
To learn more about Phantom’s Cross-Chain Swapper, read our blog post. Don't have Phantom? Download Phantom and try our Cross-Chain Swapper today.
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
FAQs
Bridging in crypto refers to the process of transferring assets between different blockchain networks. It aims to enhance interoperability, allowing for data and asset transfers across various networks. The Polygon Bridge is a tool for transferring tokens from the Polygon network to the Ethereum ecosystem.
How long does bridging take on a Phantom wallet? ›
Bridges can take anywhere from a few minutes to as long as an hour depending on network congestion and various other factors. We always show you the ETA of your transaction and keep you posted with real-time updates in the Activity tab.
How to bridge token on phantom wallet? ›
To bridge assets across chains: Connect your Phantom wallet to any of the bridges below. Choose the network, address, and tokens you want to transfer. Select the network, address, and tokens you want to receive.
What is cryptocurrency answers? ›
Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.
What is a crypto bridge hack? ›
There are two types of bridge hacks: code attacks, which exploit vulnerabilities in smart contracts, and network design attacks, frequently accomplished through social engineering. These hacks are not unique to bridges; rather, they are part of the ongoing challenge of crypto hacking and phishing attacks.
How long does bridging take crypto? ›
First you lock your crypto in a smart contract on the blockchain network you're bridging from, and then you'll receive crypto from the network you're bridging to. For example if a user is bridging from Ethereum to Polygon, the first transaction on Ethereum typically takes 10-20min.
Can you withdraw money from phantom? ›
While withdrawing tokens from your Phantom wallet to a bank account is a straightforward process, it does require a few additional steps to complete. Currently, direct withdrawal to a bank account is not available. Instead, you will need to utilize a cryptocurrency exchange.
How do I get money into my phantom wallet? ›
Step 1: Launch the Phantom wallet extension or open the Phantom app on your mobile device and click/tap on the “Deposit" button. Step 2: Search for ETH, MATIC or SOL and select the token to view the deposit address and/or the corresponding QR code. Step 3: Click on the "Copy" button to copy the deposit address.
Is Phantom crypto wallet safe? ›
Phantom Wallet is a non-custodial cryptocurrency wallet and browser extension that provides users a secure and user-friendly way to manage their digital assets. Initially made for the Solana blockchain, Phantom now supports Ethereum, Polygon and Bitcoin, but remains one of the most popular wallets for Solana.
What is the difference between swap and bridge? ›
While atomic swaps enable the peer-to-peer exchange of native assets, cross-chain bridges provide a connection between blockchains. Bridges can facilitate the transfer of wrapped assets via locking/unlocking or minting/burning mechanisms.
How to bridge to a different token
- Navigate to portfolio.metamask.io/bridge, and make sure your wallet is connected. Select the account that contains the tokens you want to bridge.
- Select the network that your preferred source token is on, and then choose the token underneath 'You send':
Therefore, Wormhole is considered the best way to bridge USDC to Solana amidst other tokens. Besides decentralized networks, Wormhole establishes connections between dApps: Frax Finance, Uniswap, Circle and other products are connected to its mechanisms as well as NFT projects DeGods and MadLads.
Which crypto to buy today? ›
Top Cryptos
| Name | Price | 24H High |
|---|
| USDC USD Coin | 86.02 | 86.02 |
| XRP Ripple | 51.3990 | 51.3990 |
| DOGE Dogecoin | 10.6306 | 10.6306 |
| TON Toncoin | 637.201 | 637.201 |
37 more rowsCryptocurrency, or crypto, is virtual or digital assets purchased with real money ($, £) traded on blockchain technology. It does not have all the values of real or fiat currencies.
How does crypto make you money? ›
How Does Crypto Make You Money? There are several ways cryptocurrency can make money for you. Decentralized finance applications let you loan your crypto with interest; you can stake a compatible one on a blockchain or at certain exchanges for rewards, or you can hold on to it and hope its market value increases.
What are the benefits of bridging crypto? ›
Using a blockchain bridge instead of a centralized exchange offers several advantages. Bridges enable direct, peer-to-peer transactions between different blockchains, reducing reliance on central intermediaries. This enhances the autonomy and privacy of users. They also support a wider range of tokens and assets.
What is the difference between swap and bridge in crypto? ›
Crypto Bridges vs Swaps: Key Differences
Swaps occur within the same blockchain, while bridges facilitate the transfer of assets across different blockchains. Bridges can also be used to exchange data, including decentralized identifiers, smart contract calls, off-chain information from oracles, etc.
What does bridging do? ›
This function is called network bridging. Bridging is distinct from routing. Routing allows multiple networks to communicate independently and yet remain separate, whereas bridging connects two separate networks as if they were a single network. In the OSI model, bridging is performed in the data link layer (layer 2).
What is the most popular bridge crypto? ›
- Defiway. Defiway managed to strike a great balance between speed, low cost, security, and ease of use. ...
- Synapse Protocol. The main selling point of Synapse Protocol is its intuitive interface and ease of use. ...
- Portal Bridge. ...
- Orbiter. ...
- Polygon Bridge. ...
- TokenPocket. ...
- SushiSwap. ...
- Crypto.com.
