Cross-Chain
Referring to the ability to transfer assets, data, or messages between different blockchain networks. Cross-chain technology is essential for blockchain interoperability, allowing ecosystems like Ethereum, Solana, and Cosmos to communicate. Solutions include bridges, relay chains, and messaging protocols like Wormhole and LayerZero.
“A cross-chain swap lets you trade ETH on Ethereum for SOL on Solana in a single operation, without first selling to a stablecoin on a centralized exchange.”
Bridge
A protocol that enables the transfer of assets and data between two different blockchains that cannot natively communicate with each other. Bridges typically lock assets on the source chain and mint equivalent wrapped tokens on the destination chain. They are critical infrastructure for multi-chain ecosystems but have been the target of major exploits due to their complexity.
Interoperability
The ability of different blockchain networks to communicate, share data, and transfer assets between each other. Interoperability is considered one of blockchain's biggest challenges, as most chains are isolated by default. Solutions include bridges, relay chains (like Polkadot), messaging protocols (like LayerZero), and standardized communication layers.
Layer 1
The base blockchain network that provides the foundational infrastructure — consensus, security, and data availability — upon which applications and Layer 2 solutions are built. Layer 1 blockchains process and finalize transactions on their own mainnet and have their own native cryptocurrency for gas fees.
Wrapped Token
A token on one blockchain that represents an equivalent asset from another blockchain or a non-tokenized asset, typically backed 1:1 by the original asset held in a custodial or smart contract vault. Wrapped tokens enable assets to be used in ecosystems they weren't originally designed for, expanding DeFi composability across chains.