Energi Bridge has two components:
- Smart Contracts: Smart contracts are deployed on both the Ethereum and Energi blockchains. They store and lock tokens on the blockchain the tokens originate from, and mint and burn tokens on the destination blockchain in a 1:1 ratio. The number of tokens in circulation remains the same.
- Validators: Validators listen to events on both Ethereum and Energi bridge smart contracts. When a token is locked on the Ethereum blockchain, the validators validate it and relay the information to the Energi blockchain. The smart contract on the Energi blockchain then mints the exact same amount of the token. On the reverse, when a bridged token is moved back from the Energi blockchain to Ethereum, the token is burned on the Energi blockchain. The validators validate the burn and relay the information to the Ethereum blockchain, where the same amount of the original token is unlocked from the smart contract.