<\/span><\/h2>\nBlockchain bridges can be classified into two broad categories: Custodial bridges and Non-Custodial bridges.<\/p>\n
\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” background_color=”#fbfbf3″ min_height=”197.9px” custom_padding=”1px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” width=”99%” min_height=”127px” custom_margin=”8px|18px|7px|||” custom_padding=”|16px|0px|21px||” global_colors_info=”{}”]<\/p>\n
Custodial crypto bridges<\/strong>\u00a0<\/span>sometimes referred to as trust-based bridge, are\u00a0<\/span>centralized bridges<\/strong>\u00a0<\/span>that needs to be managed by a central organization of mediators. Users must rely on the central entity to verify and validate transactions when transferring crypto from one chain to another. They\u00a0<\/span>might seem to be a cost-effective<\/strong>\u00a0<\/span>choice when transferring a large quantity of cryptocurrency.<\/p>\nHowever, it\u2019s crucial to realize that when you send your cryptos to an exchange and trade there, you\u00a0<\/span>lose ownership<\/strong>\u00a0<\/span>of it. Instead, you\u2019re turning over control of your crypto assets to the exchange, which might be prone to hacks. Your cryptocurrency stays under their control if you don\u2019t withdraw it from their site. This suggests that they could place\u00a0<\/span>limitations<\/strong>\u00a0<\/span>on your account and thereby, on your cryptocurrency. Additionally, there are\u00a0<\/span>expenses<\/strong>\u00a0<\/span>associated\u00a0<\/span><\/strong>with the withdrawal of cryptocurrency out of the CEX as well.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” background_color=”#f2fafc” min_height=”253.7px” custom_margin=”-14px|auto||auto||” custom_padding=”35px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”|19px||23px||” global_colors_info=”{}”]<\/p>\n
Non-custodial crypto bridges<\/strong>\u00a0that relies on smart contracts and smart order-routing engines to function are known as a trust-less or\u00a0decentralized bridge<\/strong>. Unlike custodial bridges, users\u00a0do not need to deposit<\/strong>\u00a0their crypto on the DEX for transferring crypto via these non-custodial bridges. So, there is\u00a0no need for withdrawal fees<\/strong>\u00a0as well. Most importantly, the users have\u00a0complete ownership\u00a0<\/strong>of their crypto when using a decentralized bridge.<\/p>\nThey can provide users with greater security, ease and more flexibility compared to centralized bridges. The users can just connect their #DeFi wallets and start using decentralized bridges since there is no requirement to create an account. Hence, there is no need to divulge your personal information<\/strong>. Traders are switching over to decentralized crypto bridges because of these significant advantages.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” background_color=”#415fff” use_background_color_gradient=”on” background_color_gradient_direction=”132deg” background_color_gradient_stops=”#415fff 0%|#2b4cf8 100%” custom_margin=”15px|auto||auto||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”10px||7px|||” global_colors_info=”{}”]<\/p>\n
<\/span>Join Us on Telegram<\/span><\/span><\/h2>\n[\/et_pb_text][et_pb_button button_url=”https:\/\/t.me\/RocketXexchange” url_new_window=”on” button_text=”Join” button_alignment=”center” _builder_version=”4.18.0″ _module_preset=”default” custom_button=”on” button_text_color=”#FFFFFF” custom_margin=”-26px|||||” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” min_height=”391.3px” custom_padding=”||56px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”20px|||||” global_colors_info=”{}”]<\/p>\n
<\/span>VULNERABILITIES OF CRYPTO BRIDGE<\/span><\/span><\/h2>\n\u00a0While we discussed two broad categories of crypto bridges in previous section, they have their set of vulnerabilities.<\/p>\n
<\/span>SINGLE POINT OF FAILURE:<\/strong><\/span><\/span><\/h3>\n\u00a0Centralized bridges<\/strong>\u00a0<\/span>rely on a single administrator or trusted parties called guardians for their functioning. Users face hazards as a result of centralization, which forces them to rely on a firm. However, trust is meaningless when dealing with enormous sums of money. A\u00a0<\/span>hacker or unscrupulous insider<\/strong>\u00a0<\/span>can easily infiltrate a\u00a0<\/span>central node<\/strong>\u00a0<\/span>or permissioned network and take over the blockchain bridge, stealing user funds or minting new tokens without deposits.<\/p>\n<\/span>Technical CHALLENGE:<\/strong><\/span><\/h3>\n<\/span>Decentralized bridges<\/strong>\u00a0<\/span>handle asset transfers\/bridging using\u00a0<\/span>smart contracts<\/strong>\u00a0<\/span>to lessen dependency on trusted middlemen. The minting of wrapped tokens on the other blockchain is automated via a smart contract to which the user deposits his funds. Smart contracts though are not without flaws; for instance, their level of security depends on the developers. Many decentralized bridges rely on the\u00a0<\/span>robustness of the smart contract code\u00a0<\/span><\/strong>and not the security of the blockchain. Because of this,\u00a0<\/span>malicious exploits<\/strong>\u00a0<\/span>can be used to attack bridges using poorly written smart contracts, increasing the risk to users.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” background_color=”#f2fafc” min_height=”431.9px” custom_padding=”17px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”|18px||21px||” global_colors_info=”{}”]<\/p>\n
<\/span>HOW TO BRIDGE\/TRANSFER CRYPTO COST-EFFECTIVELY?<\/span><\/span><\/h2>\nLet\u2019s delve into a much more effective and\u00a0<\/span>economic option<\/strong>\u00a0<\/span>of bridging crypto via a Hybrid Exchange like RocketX. They source their liquidity from\u00a0<\/span>250+ exchanges<\/strong>, both centralized and decentralized. They leverage their novel\u00a0<\/span>proprietary smart-order-routing<\/strong>\u00a0<\/span>engine, to transfer crypto from one chain to another.<\/p>\nThe liquidity is obtained through their\u00a0<\/span>CEX Pool<\/strong>, which has higher liquidity since the involved CEXs have incentives to retain asset pools on numerous platforms. RocketX multi-chain bridges are therefore\u00a0<\/span>highly<\/strong>\u00a0<\/span>cost-effective<\/strong>\u00a0<\/span>and have\u00a0<\/span>minimal slippage<\/strong>. The platform fee can be\u00a0<\/span>slashed down by 100%<\/strong>\u00a0<\/span>by holding the exchange\u2019s token RVF. With just\u00a0<\/span>1-click<\/strong>\u00a0<\/span>you can transfer your crypto across chains in a jiffy.<\/p>\nWith a totally non-custodial solution that supports a variety of popular digital wallets like\u00a0<\/span>MetaMask,\u00a0<\/span>Coinbase, TrustWallet,\u00a0<\/span>Phantom etc<\/strong>, this hybrid crypto exchange gives users total control over their digital assets. RocketX has cleared security audit from\u00a0<\/span>Zokyo\u00a0<\/span><\/strong>and\u00a0<\/span>NII Consulting<\/strong>, one of the leading cyber security firms in APAC. RocketX also has a very user-friendly interface similar to the Web2 dApps we are accustomed to. This makes using the RocketX crypto bridge and transferring tokens even more straightforward, greatly improving users\u2019 DeFi experiences.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”12px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/www.rocketx.exchange\/blog\/wp-content\/uploads\/2022\/10\/New-RocketX-logo-Post-02.png” alt=”Hybrid Exchanges combines the best of both centralized and decentralized exchanges.” title_text=”New RocketX logo Post-02″ _builder_version=”4.18.0″ _module_preset=”default” custom_margin=”-9px|||||” custom_padding=”|3px||0px||” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
<\/span>BENEFITS OF CRYPTO BRIDGES<\/span><\/span><\/h2>\nOver time, several innovations have been made to link networks, allowing for the\u00a0<\/span>smooth flow\/exchange of data<\/strong>\u00a0<\/span>from one blockchain to another while also increasing adoption rates. One such innovation is the crypto bridge powered by cross-chain technology which allows:<\/p>\n <\/p>\n