With over $1 billion in exploits so far in 2022, bridges between blockchains are proving to be a thorn in the side of the $200 billion market for decentralized finance.
Despite the headlines, Tarun Chitra — founder and CEO of Gauntlet, a unicorn risk-modeling platform — outlined the tradeoffs that exist between various bridging solutions.
In Chitra’s view, each currently has its own positives and drawbacks. Moving forward, crypto market participants will have to engage with bridges based on their own risk tolerance:
“I think we’ll end up in a world where the end-user will have a lot of choices and it will end up being like choosing your risk tolerance, matching the bridge to your risk tolerance.”
Unlike traditional finance, in which banks must use designated payment channels such as SWIFT for international transfers, there is no industry-standard method of cross-chain asset transfer between blockchains.
While each of the current bridging solutions between blockchain
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