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Author: Admin | 2025-04-27
Bitcoin BridgesWhile bridges have a great amount of utility, it's important to consider the potential risks that can arise from sending crypto assets between blockchains.Custody risk/ smart contract riskA disadvantage of using a trusted mechanism is that users must give up custody of their assets to a third party, which means you entrust the operators to responsibly manage the bridge and your funds while they are in escrow.Even trustless, non-custodial bridges are not free from risk. Instead of active human error, there could be unknown bugs within the smart contracts’ code that malicious attackers could uncover and exploit.Hacks, breaches, and other exploitsEvery cross-chain bridge is created differently, with some being more vulnerable than others when it comes to security. Whether it is a trusted or trustless bridge, both can be infiltrated, resulting in the permanent loss of funds.Bridge vs. Atomic Swap: What’s the Difference?Bridges and atomic swaps are two well-known methods for sending assets across chains. An atomic swap enables the secure exchange of assets between two different blockchains without the need for a trusted third party. It is implemented using smart contracts, which facilitate the swap of assets in a decentralized and trustless manner.A key difference between a bridge and an atomic swap is the way in which they facilitate the transfer of assets between two different blockchains. A bridge can be implemented using a variety of approaches, whereas an atomic swap specifically uses smart contracts to facilitate the exchange of assets.Another key difference is that atomic swaps are
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