Bridged Assets

Definition ∞ Bridged assets are digital tokens that have been moved from one blockchain network to another. This process typically involves locking the original asset on its native chain and minting a synthetic representation on the destination chain. These synthetic tokens then facilitate interoperability and access to services across different distributed ledgers.
Context ∞ The present discussion regarding bridged assets frequently involves concerns about their security and the centralization risks associated with the bridging mechanisms. A key debate revolves around the collateralization models and the potential for de-pegging events. Future developments to watch include advancements in cross-chain communication protocols that aim to enhance security and decentralization.