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Update 2_crossChainInteroperability.md

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@ -10,14 +10,14 @@ To solve the centralization problems with CEXs, decentralized exchanges (DEXs) w
**Bridges** are complex and will be discussed at length in a later section. For now, we can categorize bridges as applications which 'lock' assets on one chain in exchange for **wrapped assets** on another chain. The wrapped assets can then be exchanged for the original 'backing' asset.
There are some other essential things you should know about bridges before we go further:
There are some other essential things you should know about bridges before going further:
- Bridges are capable of being decentralized in theory, but are often quite centralized in practice.
- Bridges are currently the only way to hold a token on a chain other than its 'native' chain. If you're holding ETH on a chain other than Ethereum, it is, by definition, a wrapped token.
- Bridges are all mutually incompatible with eachother. Using multiple bridges just makes 'double wrapped' tokens.
- If tokens have become double wrapped after traversing multiple bridges or blockchains, there can be a complex unwrapping process to get back to the original token.
This explains how the ecosystem arrived at its current state--CEXs are a solution to siloed blockchains, DEXs are a simple response to CEXs, and DEXs have created a need for bridges. Each solution in this timeline is an ad-hoc patch to the previous problem, and the current landscape of fractured liquidity, double wrapped tokens, isolated userbases and wallet incompatibilities is the result.
This explains how the ecosystem arrived at its current state--CEXs are a solution to siloed blockchains, DEXs are a simple response to CEXs, and DEXs have created a demand for bridges. Each solution in this timeline is an ad-hoc patch to the previous problem, and the current landscape of fractured liquidity, double wrapped tokens, isolated userbases and wallet incompatibilities is the result.
More ad-hoc solutions would only be short-term fixes for long-term problems, so it's critical to design new primatives and core infrastructure that will allow the next generation of decentralized applications to move beyond these lingering limitations.