Definition
The ability of different blockchain networks to communicate, share data, and transfer assets between each other seamlessly. A key challenge in the multi-chain future of crypto.
Why It Matters
Most blockchains are siloed. Interoperability enables assets and data to flow freely between chains, making the overall ecosystem more useful and interconnected.
Example
Polkadot and Cosmos are protocols specifically designed to enable interoperability — allowing custom blockchains built on their frameworks to communicate and exchange assets.
Related Terms
Bridge
Layer 1
Layer 2
Blockchain