A cross-chain bridge, such as PolyBridge, is a mechanism that allows for the transfer of assets and information between different blockchain networks. In the context of decentralized finance (DeFi), cross-chain bridges becoming increasingly important as they allow interoperability between different DeFi protocols and platforms. PolyBridge is a decentralized cross-chain bridge that enables the transfer of assets across multiple blockchain networks, including Ethereum or BNB Smart Chain.
PolyBridge is a decentralized cross-chain bridge that enables the transfer of assets across multiple blockchain networks. It facilitates the transfer of assets and information between connected networks, without the need for a central intermediary. This allows for greater decentralization and trustless transfer of assets, which is particularly important in the context of DeFi. Additionally, PolyBridge allows different blockchain networks to be used for different purposes, such as using one network for high-speed transactions and another for low-cost transactions.
The bridge works in a very specific way. The user triggers the transaction via the PolyBridge application, which sends information to the origin chain, triggering a smart contract. Afterwards, transaction information is delivered through a cross-chain manager to a relayer, which further sends information to the Poly chain (cross-chain protocol). Relayer is a management solution which communicates and interacts with the smart contracts on behalf of the user. After a further validation stage, information about the transaction is delivered through another relayer to the target blockchain, and if there are no failures, the transfer is completed. If any part of the transaction process does fail, a reverse process is triggered.
The security of a cross-chain bridge is dependent on the security of the individual blockchain networks that it connects. This means that the security of the bridge can be compromised if one of the connected networks is compromised. According to the available data, PolyBridge itself has not been audited. The Poly chain, which is used by the bridge, was audited twice. In August, 2021, Poly chain and PolyBridge were targets of a successful hack, which resulted in the loss of over 600 million USD in crypto assets, one of the largest hacks in DeFi history. The hacker has since returned some of the money, and the company responded by offering him the position of a chief security advisor.
Pros and Cons
- Increased interoperability between different blockchain networks
- Greater flexibility and scalability in the use of blockchain technology
- Decentralized and trustless transfer of assets
- Can use different blockchain networks for different purposes
- Lower transaction fees
- The security of the bridge is dependent on the security of the individual blockchain networks
- Not beginner-friendly due to a lack of information
- No audits of the bridge have been completed
- It has been successfully hacked
- No official docs and not much official information available online
Tips from an Analyst
- Carefully consider the security of each individual blockchain network that the bridge connects
- Use the bridge for specific use cases, such as Defi
- Understand the technical details of the bridge before using it
- Take advantage of the lower transaction fees offered by PolyBridge
Cross-chain bridges, such as PolyBridge, are an exciting development in the blockchain space as they allow for greater interoperability and flexibility between different blockchains. The ability to transfer assets and information across different networks without the need for a central intermediary is a game changer for decentralized finance (DeFi) and has the potential to greatly increase the adoption and usability of blockchain technology. Although PolyBridge might seem to be a promising project on the surface, I do not have a good feeling about it personally. It is very hard to find any reliable information about the project, the team, or how it works. There are no official docs either. The fact that the bridge itself has not been audited (or if it has, there is no information about it) and has already been hacked, speaks for itself.