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Cross-Chain Meaning

Cross-chain technology enables interoperability between independent blockchain networks. Since blockchains operate as isolated systems with distinct consensus rules and data structures, cross-chain solutions allow assets, data, and instructions to move between them.

Cross-chain functionality supports asset transfers, liquidity sharing, and composable applications across ecosystems. This reduces fragmentation and expands user access to decentralized finance (DeFi) services.

Common cross-chain mechanisms include bridges, relayers, wrapped assets, and messaging protocols. Each approach carries trade-offs between security, decentralization, and efficiency.

While cross-chain systems unlock significant innovation, they have historically been a major attack surface. Security design, auditing, and risk management are critical to safe cross-chain deployment.

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