Asset Bridge

Definition ∞ An asset bridge is a protocol that facilitates the transfer of digital assets between different blockchain networks. It allows users to move tokens from one chain to another, effectively expanding their utility and access to various decentralized finance ecosystems. These bridges are vital for cross-chain communication and asset liquidity.
Context ∞ Asset bridges are frequently in the news due to their critical role in facilitating cross-chain DeFi activities and their susceptibility to security vulnerabilities. Discussions often revolve around the security audits of these bridges, the risks associated with smart contract exploits, and the ongoing development of more robust and decentralized bridging solutions to connect disparate blockchain environments.