P2P Bridge

A P2P bridge is a method of moving value between two blockchains in which users trade directly with each other rather than handing their coins to a central bridge contract or custodian. In a typical design, someone who holds coins on chain A and wants coins on chain B is matched with a counterparty who wants the reverse, and the two legs are linked by atomic swaps, often built with a hashed timelock contract, so that either both transfers happen or neither does. Because no large pool of locked funds sits in one place, a peer-to-peer design avoids the honeypot risk that has made many custodial blockchain bridges targets for hackers. The trade-offs are slower matching, the need for a willing counterparty at an acceptable price, and limited support for chains whose scripting cannot handle timelocks. The term is informal and covers several designs. Also see peer-to-peer.