diff --git a/defi_and_trading/bridges/README.md b/defi_and_trading/bridges/README.md index e7b1454..7b07662 100644 --- a/defi_and_trading/bridges/README.md +++ b/defi_and_trading/bridges/README.md @@ -1,9 +1,11 @@ -## Bridges +## bridges
-### Centralized Bridge +### centralized + +
* Centralized bridges are essentially hot wallets straddling the fence between multiple chains. * They hold a user’s assets on one chain and issue them a corresponding amount of tokens on another chain. @@ -12,8 +14,11 @@ * The security risks of a centralized bridge are the same security risks that exist for exchanges and custodians. * Their primary responsibility is securing private keys (key management), and as a result centralized bridges have proven to be pretty secure. +
-### Proof of Stake Bridge +### proof-of-stake bridge + +
* Proof of Stake bridges are like little blockchain networks narrowly focused on facilitating cross-chain activity. * Whereas centralized bridges are managed by a single entity, proof of stake bridges are managed by a group. @@ -21,8 +26,11 @@ * Because POS bridges involve both smart contracts and a group of centralized gatekeepers, they inherit all the code risk of Web 3 and the traditional security risks of Web 2 (key management, access controls). * POS bridges have the most attack vectors, and have unfortunately been the victims of most of the major exploits. +
-### Decentralized Bridge +### decentralized bridge + +
* Decentralized bridges take a proof of deposit from one chain and validate it on the other chain (ex: Polygon Plasma Bridge). * Decentralized bridges are all code. They don’t rely on centralized signers/validators, so while there’s more code risk, they don’t have to worry about the traditional security risks that POS bridges deal with.