General5 min read8/7/2025

Bailment and Bridge Alternatives on DevvX

Discover how DevvX uses bailment partners to replace risky blockchain bridges. Learn why this approach improves security, aligns with institutional needs, and protects users from loss.

Bridges are one of the most exploited points in the crypto world, billions have been lost to hacks, bugs, and mismanagement. On DevvX, we’ve designed a different path forward: combining bailment partners with wrapped assets to eliminate common bridge vulnerabilities and align with institutional standards.

The Problem With Traditional Bridges

Most blockchain bridges follow a simple process:

  1. Lock an asset on one chain.

  2. Mint a wrapped version of it on another chain via a smart contract.

  3. Rely on that smart contract to secure and release assets.

While effective in theory, this method leaves two big attack surfaces:

  • Smart contract exploits - Even well-audited contracts can be hacked.

  • Centralized custody risks - In some cases, the custodian managing the locked asset can mismanage or lose funds.

For institutions, there’s an additional problem: Many fiduciary frameworks outright prohibit using platforms that rely on smart contracts for asset custody.


DevvX’s Alternative: Bailment Partners

Instead of relying solely on code, DevvX uses bailment partners—entities that legally and operationally hold the underlying asset while maintaining:

  • A full verification node of the blockchain.

  • Legal obligation to return assets to users if the platform fails.

  • Insurance coverage from reputable firms (e.g., Lloyd’s of London).

When you hold a wrapped BTC on DevvX:

  • The BTC itself is stored with the bailment partner.

  • The partner maintains a full copy of the DevvX blockchain, ensuring transparency and immutability.

  • If DevvX were to go out of business, the partner could return your BTC directly—no multi-year bankruptcy wait, no partial recovery.


Why This Is Better Than Bridges

  1. Institutional Compliance - Removes the smart contract risk that stops TradFi players from engaging.

  2. Insurance-Backed Security - Losses from custodian hacks are covered.

  3. User Protections - You retain a legal path to reclaim assets immediately if the platform fails.

  4. No Multi-Year Lockups - Unlike bankrupt exchanges or compromised bridges, assets can be retrieved without lengthy legal battles.


The Takeaway

Bridges may be the norm, but they’re far from perfect. With bailment + verification nodes, DevvX is providing a safer, more institution-friendly way to move assets across ecosystems without exposing them to the biggest risks that have plagued crypto for years.

General5 min read
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