Interoperability Standard

Definition ∞ An interoperability standard is a set of agreed-upon technical specifications that allows different systems or blockchains to communicate and exchange data seamlessly. This standard defines common protocols, data formats, and communication methods, enabling digital assets and information to move between disparate blockchain networks or traditional financial systems. Its implementation facilitates the creation of a more connected and efficient digital economy, where assets and applications are not confined to isolated ecosystems. Achieving true interoperability is essential for the broad adoption of blockchain technology.
Context ∞ The development and adoption of effective interoperability standards are a primary focus for advancing the utility and reach of blockchain technology. Discussions often involve competing technical approaches, such as cross-chain bridges or universal messaging protocols, and their respective security implications. News frequently reports on collaborations and technological advancements aimed at establishing widely accepted standards for seamless digital asset transfer.