Cross-chain technology enables different blockchain networks to transfer data and tokens among themselves. Working to implement interconnectivity among blockchains, it can make blockchain technology a lot more scalable and versatile. Each network operates independently but cannot connect to other networks in its current siloed form.

Cross-chain projects like Polkadot and Cosmos aim to connect different blockchain ecosystems. Meanwhile, cross-chain bridges offer a method to connect two or more networks and allow token transfer between them. Blockchain bridges are instrumental in making DeFi applications far more scalable, allowing for the seamless transfer of assets between multiple ecosystems.