An interoperable ledger is a distributed ledger technology that can communicate and exchange data or assets with other distinct blockchain networks. This capability allows for seamless asset transfers, data sharing, and cross-chain smart contract execution between otherwise isolated blockchain environments. Interoperability protocols often utilize bridges, relay networks, or atomic swaps to facilitate these interactions. The goal is to create a more connected and efficient digital asset ecosystem, moving beyond siloed blockchain platforms.
Context
The pursuit of interoperable ledgers is a central theme in the ongoing evolution of blockchain technology, addressing the fragmentation of the current landscape. Discussions frequently concern the security implications of cross-chain bridges and the standardization of communication protocols. Future developments are focused on building more robust and trustless interoperability solutions, enabling a truly connected network of distributed ledgers for diverse applications.
The DLT platform automates collateral movement and settlement finality, drastically improving capital efficiency and unlocking latent liquidity for global financial institutions.
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