From 2449c860e04d04c1a80e4f441460850e0fc568a5 Mon Sep 17 00:00:00 2001
From: "dr. mia von steinkirch, phd"
<1130416+mvonsteinkirch@users.noreply.github.com>
Date: Tue, 7 Feb 2023 16:22:03 -0800
Subject: [PATCH] Update README.md
---
defi_and_trading/bridges/README.md | 16 ++++++++++++----
1 file changed, 12 insertions(+), 4 deletions(-)
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.