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Cross-chain
Cross-chain technology enables the transfer of assets, tokens, or data between different blockchain networks. Traditionally, blockchains operate in isolation, meaning that assets or data on one chain cannot be easily moved to another. Cross-chain solutions overcome this limitation by creating a bridge between blockchains, allowing for interoperability between networks with different consensus mechanisms or architectures. These bridges can be centralized (managed by an intermediary) or decentralized (managed by smart contracts and validators). Cross-chain technology is crucial for decentralized finance (DeFi), as it enables liquidity to flow between various platforms and blockchains, allowing for a more integrated and versatile decentralized ecosystem. Examples of cross-chain platforms include Polkadot and Cosmos, both of which focus on creating ecosystems where blockchains can easily interact.
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