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Interoperability

Intermediate

Interoperability in blockchain refers to the ability of different networks to communicate, share data, and perform cross-chain transactions. It allows users to transfer assets and information seamlessly between platforms like Ethereum, Polkadot, and Cosmos. Interoperability enhances scalability, functionality, and user experience across the decentralised ecosystem. Projects that support cross-chain capabilities play a key role in unifying fragmented blockchain systems. As Web3 evolves, interoperability will be vital for enabling truly decentralised applications that are chain-agnostic and universally accessible.

Related Words

Immutable

Intermediate

Immutable means that once data is recorded on a blockchain, it cannot be changed or deleted. This creates a permanent, transparent record that builds trust and accountability in crypto transactions, contracts, and data sharing.

ICO

Beginner

An ICO (Initial Coin Offering) is a fundraising method where new crypto projects sell new tokens to early investors. It's similar to an IPO in traditional finance but carries higher risk and less regulation.

Impermanent Loss

Advanced

Impermanent loss occurs when providing liquidity to a pool and asset prices shift significantly due to market changes. The loss is only realised if the assets are withdrawn while prices remain unfavourable.

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