Multi-Chain Finance

Definition ∞ Multi-chain finance refers to the operation of digital assets and decentralized financial services across several independent blockchain networks. This approach contrasts with single-chain systems by allowing users to interact with applications and move assets between different blockchains. It aims to overcome the limitations of individual networks, such as scalability or specific functionalities, by leveraging the strengths of multiple protocols. Interoperability solutions facilitate this cross-network activity.
Context ∞ News about decentralized finance frequently highlights multi-chain finance as a solution to network congestion and high transaction fees on dominant blockchains. A critical discussion involves the security and reliability of bridging solutions that enable asset transfers between chains. The expansion of multi-chain ecosystems indicates a maturing digital asset landscape, offering users greater flexibility and choice.