Network Composability

Definition ∞ Network composability describes the ability of different decentralized applications (dApps) or protocols within a blockchain ecosystem to interact and build upon each other. This allows developers to combine existing components to create new functionalities, akin to using building blocks. High network composability fosters innovation by enabling the rapid development of complex financial instruments and services without needing to reinvent core functionalities. It is a key characteristic of open and permissionless blockchain platforms.
Context ∞ Network composability is frequently cited as a primary advantage of certain blockchain ecosystems, particularly those supporting smart contracts. News reports often detail new dApp integrations or collaborations that showcase how protocols are leveraging each other’s functionalities. Discussions around composability often involve the challenges of ensuring security and preventing unintended consequences when disparate smart contracts interact, particularly in DeFi.