Cross-Chain Flow

Definition ∞ Cross-chain flow describes the movement of digital assets and data between distinct blockchain networks. This interoperability enables assets issued on one blockchain to be utilized on another, expanding their utility and market reach. The process often involves bridging solutions that lock assets on the source chain and issue wrapped representations on the destination chain. Facilitating efficient cross-chain flow is essential for a connected decentralized finance landscape and for maximizing liquidity across various protocols.
Context ∞ The ongoing expansion of the blockchain ecosystem highlights the importance of seamless cross-chain flow for capital efficiency and user experience. Discussions frequently address the security implications of various bridging technologies and the potential for fragmentation of liquidity. Future developments aim to achieve more secure, faster, and less costly methods for asset transfers between independent distributed ledgers.