What is Two-Way Peg (2WP)?

A two-way peg (2WP) is a mechanism attached or built into a blockchain protocol that can facilitate the transfer of tokens and other data from a mainchain to an independent blockchain network. In fact, the 'transfer' of tokens doesn't actually take place, but the assets that are sent on the initial blockchain are locked in place so they cannot be used, while the receiving blockchain creates a new number of tokens equivalent to the amount sent. There are several variations of the model — often called bridges — that allow for blockchains to send data and tokenized assets back and forth between various blockchain protocols.