Definition ∞ Cross-Chain Capital Flow represents the movement of digital assets or value between distinct and independent blockchain networks. This process enables interoperability, allowing assets originally issued on one chain to be utilized or exchanged on another. It addresses the fragmentation inherent in a multi-blockchain ecosystem by facilitating value transfer.
Context ∞ The ability to move capital across different blockchains is a critical area of development and news coverage in the digital asset space. It is essential for expanding the utility of tokens and for enabling more complex decentralized applications. Discussions often center on the security and efficiency of cross-chain bridges and other interoperability solutions, which are vital for this flow.
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