How Venom Bridge transfers function

The Mechanics of Venom Bridge transfers

When the Venom Bridge transfers the assets between chains, it locks the assets in the input chain and creates the same amount of wrapped tokens on the output chain.

The very process which is assumed to be the asset transfer between the blockchains via the so-called bridge does not actually send any tokens from one blockchain to another. Instead it’s the work by smart contracts which lock the tokens on one blockchain and produce and then release on another.

For example, when you plan to move such tokens as ETH from Ethereum network to Venom, the Venom bridge would lock ETH on Ethereum network, then create the equivalent number of new wETH tokens on Venom network. And when you would like to “move” your wETH tokens from Venom network back to Ethereum Network, these wETH tokens will get burned and the equivalent amount of ETH will be released to you on Venom network.

In order to maintain the parity of equivalent tokens between the chains, a special interchain two-way binding system is applied, though which the communication between chains is established. This system also keeps in check the values of a token on both blockchain to keep the in parity.