Crypto glossary
Interoperability
Interoperability is the ability of separate blockchains to exchange tokens, data and messages with each other, so users and apps are not locked into one chain.
Each blockchain keeps its own ledger and cannot natively read another chain's state. Interoperability covers the tools that close that gap: bridges that lock tokens on one chain and issue a representation on another, messaging protocols that let a smart contract on one network trigger an action on a second, and shared standards inside ecosystems.
Cosmos chains talk through the IBC protocol, Polkadot connects its parachains through its relay chain, and general messaging networks such as Chainlink CCIP, LayerZero and Wormhole link many EVM and non-EVM chains. Stablecoin issuers and tokenization projects rely on these systems to move assets wherever users are.
Every cross-chain hop adds trust assumptions, from validator committees to multisig signers, and bridges have been among the costliest targets in crypto, with the Ronin and Wormhole hacks in 2022 each exceeding $300 million. More connections improve convenience but also widen the attack surface.
Example
A user moves 1,000 USDC from Ethereum to an L2 through a messaging protocol: the tokens are burned or locked on one side and an equal amount is minted on the other a few minutes later.
Related terms
Latest articles on Interoperability
- Consensys Unveils Interoperability Stack for Institutional Cross-Ledger Settlement
- LayerZero Powers Loon CADC Stablecoin Interoperability Across Major Blockchain Networks
- Unichain Upgrades to OP Enterprise for Native OP Stack Interoperability
- Unifying Global Infrastructure: How Empresex Uses Multiple Payment Rails to Fix Interoperability
- JPMorgan’s XRP-Linked Transfer Ignites New Interoperability Debate
