Blockchain QNA Part 4

1. Farming in DeFi involves GPU mining and a soft cap system. Users lend or stake crypto in liquidity pools to earn rewards. GPU mining enhances computational power for validation, while a soft cap sets a minimum funding goal. If the soft cap isn't reached, the project may refund contributions.

2. A bridge system on a blockchain enables the transfer of assets, data, or information between two separate blockchain networks. Since different blockchains operate independently with unique protocols, a bridge facilitates interoperability by allowing users to move tokens or other assets across networks. For example, a bridge between Ethereum and Binance Smart Chain (BSC) allows tokens to be transferred seamlessly between the two. The bridge either locks the assets on the originating chain and issues wrapped tokens on the destination chain, or burns them when they move back, ensuring that the total supply remains consistent across chains.

3. What Is Lite Paper And Whitepaper?
Answer: A Lite Paper typically provides information about upcoming systems, applications, price listings, and other developments by a company. It offers a concise overview of these upcoming features. On the other hand, a Whitepaper is a more comprehensive document that outlines a company's token distribution strategy and typically includes detailed charts and graphs illustrating the plan.