Decentralized Finance Bridge

Definition ∞ A Decentralized Finance bridge is a protocol enabling the transfer of assets and information between different blockchain networks. These bridges facilitate interoperability, allowing users to move tokens from one chain to another without relying on a centralized intermediary. They are essential for expanding the utility and reach of various digital assets. Such systems unlock liquidity across disparate blockchain environments.
Context ∞ The importance of decentralized finance bridges continues to grow as the blockchain landscape expands with numerous independent networks. While offering enhanced liquidity and accessibility, these bridges also face security concerns, making their robust design a key area of focus. Ongoing developments aim to strengthen the security and efficiency of cross-chain asset transfers.