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How do cross-chain bridges function, and what are their security risks?
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Bridges lock assets on Chain A and mint synthetic versions on Chain B.
Types:
Centralized custodial: One entity manages locked assets (e.g., Binance Bridge).
Decentralized: Multi-signature or smart contract-based custody (e.g., Wormhole, Avalanche Bridge).
Risks:
Smart contract exploits: Bridges are top targets; billions lost historically.
Oracle vulnerabilities: Price or state feeds can be manipulated.
Liquidity attacks: Insufficient liquidity can cause cascading failures.
