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Venturing to the territory of less-known brands can increase risks, which makes it unattractive to smaller traders. If you would do this regularly, you’d have to convert bitcoin to ETH on a trading platform, withdraw it to a wallet then deposit again to another exchange. Trust-Based Bridges. Furthermore, a trustless bridge entrusts the responsibility of assets to the users, thereby implying possibility of a loss of funds due to user error. Blockchain bridge has a primary function to make interoperability possible. Interoperability defines how well digital and data assets stored on a blockchain network can communicate. The new-gen Internet requires primary interoperability to function properly as a complete unit. Thus, blockchain bridges are a necessity to allow the transfer of data, value and information efficiently among different protocols. Trustless bridges are the most common form of crypto bridges connecting large public blockchains. But how do you move your ETH tokens from the Ethereum network to a Layer 2 chain, like Arbitrum or Optimism, or Coinbase’s upcoming Base L2 network? Another approach to enabling cross-chain bridge transfers is by using a liquidity pool.