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Onchain Economics
Infrastructure

Bridge

A protocol that enables transferring assets or data between different blockchains.

In-Depth Explanation

Bridges lock assets on one chain and mint/release equivalents on another. They're essential for cross-chain liquidity but are high-value attack targets—billions have been lost to bridge exploits. Bridge security models vary from trusted (multisig) to trust-minimized (light clients, ZK proofs).

Related Terms

Cross-Chain

Interactions, transactions, or asset transfers between different blockchain networks.

Wrapped Token

A token on one blockchain that represents an asset from another blockchain, maintaining a 1:1 peg.

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Gas Fees

Transaction fees paid to validators/miners for executing operations on a blockchain.

Gwei

A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.

Layer 2

L2

Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.

Layer 1

L1

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

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