An interoperability link refers to a mechanism that enables different blockchain networks to communicate and exchange data or assets seamlessly. This link facilitates the transfer of value and information between otherwise isolated decentralized systems. It addresses the fragmentation within the blockchain ecosystem, allowing for more cohesive application development. Examples include bridges and cross-chain messaging protocols.
Context
The pursuit of robust interoperability links is a central theme in advancing the utility and scalability of the broader blockchain landscape. Current efforts concentrate on developing secure and efficient bridging solutions to connect disparate networks. The discussion often centers on the security risks associated with these links and methods to mitigate them.
The Eurosystem's DLT settlement plan establishes a compliant, systemic rail for tokenized assets, reducing counterparty risk and friction in wholesale finance.
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