Definition ∞ On-chain migration refers to the process of transferring assets, data, or protocol functionalities from one blockchain to another, or from an off-chain system onto a blockchain. This often occurs when a project decides to upgrade its underlying network, or when traditional assets are tokenized and moved onto a distributed ledger. The migration ensures continuity of value and functionality within a new operational environment. It can also involve moving from a layer-1 to a layer-2 solution.
Context ∞ News often reports on significant on-chain migrations, such as protocol upgrades or asset re-platforming, due to their technical complexity and potential market impact. Discussions revolve around the security of migration processes, the economic incentives for participants, and the implications for network decentralization. Future developments include more streamlined and secure migration tools, facilitating smoother transitions for projects seeking enhanced performance or different network features.