Cross-Chain Exposure

Definition ∞ Cross-chain exposure denotes the degree to which an entity’s digital assets or operations are linked across different blockchain networks. This connection arises from utilizing bridges, wrapped assets, or multi-chain protocols. Such exposure introduces new dimensions of risk and opportunity related to asset transferability and application functionality across disparate chains. It reflects the interconnectedness of the broader digital asset ecosystem.
Context ∞ The increasing demand for interoperability between blockchains has heightened discussions around cross-chain exposure and its associated risks. Security vulnerabilities in cross-chain bridges represent a significant concern, often leading to substantial asset losses. Developers are working to create more secure and reliable methods for asset movement and communication between independent networks.