What is cross-chain in DeFi?
Asked 3 years ago
Hello. What does cross-chain mean in decentralized finance? Thank you
Wilbur Padilla
Tuesday, February 01, 2022
A blockchain is an entire ecosystem that consists of a base layer and a programmable layer often supports the development of other applications. The base layer determines the rules of transactions level of security, speed, and standards for the development of newer applications on the programmable layer. Although, some blockchains do not have a programmable layer that allows developers to build decentralized applications.
Whether or not it has a programmable layer, the base layer is the blockchain, like the Bitcoin blockchain, and the token on the base layer is the native token such as Bitcoin. Most blockchains are independent, and consist of all applications built on the base layer if the blokchain in question has a programmable layer. Cross-chain means the ability to perform transactions across blockchains without receiving an error. For example, sending Ethereum to EOS or Cardano such that your ETH can exist on the Cardano even though the base layer have defferent computational logic.
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