Crosschain swaps are the direct exchange of digital assets between two distinct and otherwise incompatible blockchain networks without requiring a centralized intermediary. These operations enable value transfer and interoperability across different distributed ledgers. They are achieved through atomic swaps or specialized protocols, enhancing liquidity.
Context
Crosschain swaps are key to enhancing the utility and liquidity of the broader digital asset ecosystem by enabling seamless asset movement. Ongoing developments focus on improving their security, speed, and user experience. Addressing challenges such as transaction finality and potential vulnerabilities in bridge protocols remains a primary concern.
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