Understand base chains, scaling networks, rollups, bridges, wrapped assets and the operational risks of moving value between networks.
A Layer 1 is a base blockchain that provides its own consensus and settlement environment. Examples include Bitcoin and Ethereum.
A Layer 2 generally builds on or around an underlying blockchain to improve throughput, reduce cost or change execution while using a base layer for security or settlement in some form.
Rollups execute transactions outside the base layer in a way that batches data or proofs back to the underlying chain. Optimistic and zero-knowledge approaches use different verification mechanisms.
A bridge is infrastructure for moving or representing assets across networks. Designs can use lock-and-mint, burn-and-mint, liquidity pools, messaging systems or other models.
A wrapped asset represents another asset or claim through a specific mechanism. Its value depends on the system maintaining the expected relationship.
An address can look valid while still being wrong for the intended network or asset route.
Some bridges rely on pools of assets or liquidity providers. Large transfers can be constrained by available liquidity.
Bridges have historically been a major attack surface because they combine custody, messaging and complex smart-contract logic.
Cross-chain systems may wait for source-chain finality before crediting or releasing assets. L2 withdrawals can also have specific timelines or challenge mechanisms.
Before moving assets, verify source chain, destination chain, token contract, bridge/domain, recipient, fees, limits and finality.
Before moving money, connecting a wallet, trusting a claim or signing a transaction, slow down. Identify the exact asset, network, contract, source, permissions and risks.