ERC-20 tokens move between main chains and layer 2 networks through special bridge systems. These bridges keep every token’s original form safe across different blockchain setups. This connection helps projects use layer 2 features while still working with the same ERC-20 base system. Tokens from many networks, including meme coins, show how cross-chain links allow more people to take part. It also gives faster transactions and lower costs without leaving the trusted ERC-20 model.
Bridge technology connects
Bridges work as middle systems that move tokens between the main network and layer 2 systems. They use a lock and mint process to keep the total token amount the same in both places. When users send tokens to layer 2, the bridge locks the real tokens on the main chain. Then it creates the same number of new tokens on layer 2. This method keeps tokens active in one place at a time. It stops double-spending and keeps the total token count correct. Many projects, from long-running tokens to new meme coins, bonk coin, use these bridge systems to grow their use across many network layers. The reverse process happens when users withdraw from layer 2 back to the main chains. Layer 2 tokens get burned, while locked main chain tokens get released to destination addresses.
Wrapped token creation
Layer 2 systems hold ERC-20 tokens in a wrapped form. These tokens keep the same value as the original ones through a direct redemption method. Wrapped tokens work in the same way as the main tokens and can be used for trading or sending between wallets. Inside a Layer 2 setup, they act like normal tokens and follow the same rules in smart contract use.
- Wrapped tokens maintain one-to-one exchange ratios with original ERC-20 tokens
- Smart contracts enforce redemption rights, letting holders claim original tokens anytime
- Layer 2 exchanges treat wrapped tokens as equivalent to originals for trading purposes
- DeFi protocols accept wrapped tokens for lending, staking, and liquidity provision
- Price arbitrage keeps wrapped token values aligned with original token markets
These wrapped representations enable full functionality on layer 2 networks while preserving connections to main chain liquidity and value. The seamless interchangeability means users don’t sacrifice utility when moving between network layers for cost or speed benefits.
Smart contract portability
This compatibility helps existing ERC-20 projects move to layer 2 networks without building everything again. Developers use cross-chain messaging systems that allow smart contracts on many networks to connect and share actions. These systems allow the main chain contracts to start layer 2 tasks and layer 2 contracts to act on the main chain. This process supports advanced applications that work across many connected networks. The interoperability expands what decentralised applications can achieve by leveraging the strengths of different blockchain environments simultaneously. ERC-20 tokens work with layer 2 systems through bridges and wrapped token systems. They also use state channels and smart contract movement between layers. This setup allows tokens to gain lower transaction costs and faster operation. It keeps full support with existing ERC-20 networks and liquidity systems. The connection helps tokens stay linked with the main chain while using layer 2 speed and efficiency.
