Magnetic reconnection is commonly considered as a mechanism of solar (eruptive) flares. A deeper study of this scenario reveals, however, a number of open issues. Among them is the fundamental question, how the magnetic energy is transferred from large, accumulation scales to plasma scales where its actual dissipation takes place. In order to investigate this transfer over a broad range of scales we address this question by means of high-resolution MHD simulation. The simulation results indicate, that the magnetic-energy transfer to small scales is realized via a cascade of consecutive smaller and smaller flux-ropes (plasmoids), in analogy with the vortex-tube cascade in (incompressible) fluid dynamics. Both tearing and (driven) coalescence processes are equally important for the consecutive fragmentation of the magnetic field (and associated current density) to smaller elements. At the later stages a dynamic balance between tearing and coalescence processes reveals a steady (power-law) scaling typical for cascading processes. It is shown that besides providing a physical mechanism for energy transport from large to small scales cascading reconnection addresses also other open issues in the solar flare research like the duality of regular large-scale phenomena in (eruptive) flares and the observed signatures of fragmented (chaotic) energy release, as well as the huge number of accelerated particles. Indeed, spontaneous current-layer fragmentation and formation of multiple channelised dissipative/acceleration regions embedded in the current layer appears to be intrinsic to the cascading process. The multiple small-scale current sheets may also facilitate the acceleration of a large number of particles.The structure, distribution and dynamics of the embedded potential acceleration regions in a fragmented by cascading reconnection current layer is studied and discussed.