DLT Fragmentation

Definition ∞ DLT fragmentation refers to the existence of numerous, disparate distributed ledger technology platforms and networks that struggle to interoperate. This lack of seamless communication between different blockchains creates silos, hindering the flow of data and assets across the broader digital ecosystem. It presents challenges for universal adoption and liquidity.
Context ∞ DLT fragmentation is a significant challenge for the widespread adoption of blockchain technology, particularly in enterprise applications. News frequently addresses efforts to develop interoperability solutions, such as cross-chain bridges and standardized protocols. Overcoming this division is crucial for realizing the full potential of distributed ledger systems.