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Wormhole Meaning

Wormhole is a cross-chain messaging and bridging protocol that allows tokens and data to move seamlessly between blockchain networks like Ethereum, Solana, BNB Chain, and others. By locking assets on the source chain and minting corresponding wrapped tokens on the destination chain, Wormhole enables users to access decentralised applications on multiple networks without liquidating their positions.

Wormhole also facilitates cross-chain governance, oracles, and interoperability, though it must manage security risks associated with bridging, such as exploits and smart contract bugs.

The protocol gained notoriety after a high-profile hack in 2022, prompting renewed focus on cross-chain security.

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