Blockchain Interoperability

Blockchain interoperability is the ability of separate blockchains to exchange data, assets and messages so applications can work across them. It relies on bridges, messaging protocols and shared standards.

Related Terms

  • Cross-Chain Bridge

    A cross-chain bridge is a protocol that moves tokens or messages from one blockchain to another. It usually locks an asset on the source chain and issues a matching representation on the destination.

  • Finality

    Finality is the point at which a blockchain transaction can no longer be reversed or reordered. Networks reach it through different mechanisms and at very different speeds.

  • Layer 2

    A Layer 2 is a network built on top of a base blockchain that processes transactions away from the main chain and settles the results back to it. The aim is lower fees and higher throughput.

  • Oracle

    A blockchain oracle is a service that brings outside data, such as asset prices or event results, onto a blockchain so smart contracts can use it. Contracts cannot fetch that data themselves.

  • Rollup

    A rollup is a Layer 2 network that executes transactions off the main chain and posts them in compressed batches to it. Fraud proofs (optimistic) or validity proofs (ZK) keep the results honest.

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