Blockchain bridges

Lesson Summary:

This lesson explores the role of blockchain bridges, also known as cross-chain bridges, in connecting different blockchain networks. It covers how bridges facilitate asset transfers, information exchange, and interoperability between blockchains, which are otherwise isolated ecosystems. The lesson also explains the workings of centralised and decentralised bridges, the use of liquidity pools, and the significance of these bridges in expanding applications like decentralised finance (DeFi). Furthermore, the lesson provides insights into the technical process of building a decentralised bridge between Ethereum and Binance Smart Chain, highlighting security and usability considerations.

Lesson Objectives:

1. Define blockchain bridges and explain their role in the blockchain ecosystem.
2. Identify the key functions of blockchain bridges, including asset transfer and interoperability.
3. Describe the differences between centralised and decentralised bridges and their security implications.
4. Understand the steps involved in developing a decentralised bridge, with a focus on Ethereum and Binance Smart Chain.
5. Discuss the challenges and importance of security in maintaining blockchain bridges.
6. Evaluate the potential impact of blockchain bridges on expanding DeFi and other blockchain applications.