Interoperable Blockchain

Definition ∞ An Interoperable Blockchain is a distributed ledger system capable of exchanging data and assets seamlessly with other distinct blockchain networks. This functionality allows different blockchains to communicate and interact, overcoming the traditional isolation of individual ledgers. It promotes a more connected and efficient digital asset landscape. This capability is essential for a unified digital economy.
Context ∞ The pursuit of interoperable blockchains is a key trend in the evolution of decentralized finance, aiming to unlock greater liquidity and functionality across various protocols. Projects focused on cross-chain bridges, atomic swaps, and standardized communication protocols are regularly featured in news. These initiatives address the technical and security challenges inherent in connecting disparate blockchain environments.