Cross-chain transfer

A cross-chain transfer is the movement of a crypto asset or message from one blockchain network to another. Because blockchains operate as separate ledgers, cross-chain transfers usually rely on a bridge, messaging protocol, or wrapped-asset system to account for the asset on the source chain and make a corresponding representation available on the destination chain. Depending on the design, the original asset may be locked or held in escrow on the source network while a wrapped or canonical version is minted, released, or credited on the destination network. Cross-chain transfers are often used to access applications, liquidity, or services that exist on a different blockchain than where the asset is currently held.

A user holds ETH on Ethereum and transfers value to Arbitrum through a bridge so they can use an Arbitrum-based decentralised application that requires ETH on Arbitrum for gas fees.