Blockchain & Cryptocurrency Glossary

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Bridge Channels

1 min read
Pronunciation
[brij chann-uhls]
Analogy
Like dedicated phone lines between two offices that ensure direct, reliable communication without going through public networks.
Definition
Communication paths between blockchains or layer‑2 networks that carry messages and transactions, often implemented via state channels, payment channels, or messaging protocols.
Key Points Intro
Bridge channels facilitate efficient, low‑latency cross‑chain interactions by maintaining off‑chain state commitments.
Key Points

Off‑chain state: Updates exchanged without on‑chain transactions until settlement.

Two‑party vs. multi‑party: Can involve only sender/receiver or multiple validators.

Settlement: Periodic on‑chain commitments finalize state.

Dispute resolution: On‑chain mechanisms handle misbehavior.

Example
A state channel between Ethereum and a rollup permits dozens of transfers off‑chain, then commits net balances on Ethereum in a single transaction.
Technical Deep Dive
Channels open via on‑chain `openChannel()` contract calls with locked collateral. Off‑chain, participants exchange signed state updates. Closing uses `closeChannel(state, signatures)` which the contract verifies before releasing funds.
Security Warning
If a participant goes offline, others can cheat by publishing old state; implement time‑locks and challenge windows.
Caveat
Channels trade on‑chain cost for off‑chain complexity; suitable for high‑frequency transfers but add protocol overhead.

Bridge Channels - Related Articles

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