This article is a community contribution. Written by the CEO of PureStake, the development team behind the Moonbeam platform that enables cross-chain connectivity for applications.

The views expressed in this article are those of the contributor/author and do not necessarily reflect the views of Binance Academy.

Abstract

Cross-chain interoperability refers to the ability of applications to communicate and interact with each other across different blockchain networks. This enables the transfer of data and value between disparate systems, enhancing connectivity and seamless integration.

What is interoperability in blockchain?

Interoperability in the context of blockchain refers to the ability of one blockchain to freely exchange data with other blockchains. Cross-chain interoperability means that smart contracts on different platforms can communicate with each other without the need to send actual tokens across chains.

For example, assets, services, and transactions are recorded as documents on the blockchain. Any activity conducted on one blockchain can be reflected on another blockchain with the right interoperability solutions. In other words, no matter which blockchain the assets and services are on, they can be operated through the application.

Why is interoperability important?

Today's blockchain is in a similar position to the early Internet: there are many isolated ecosystems that cannot exchange information with each other.

Due to the lack of interoperability and connectivity, blockchain technology cannot be applied more widely because data and value cannot cross the network Provide barrier-free transmission.

From a developer's perspective, each deployment constitutes an isolated independent entity, resulting in back-end contracts having no connection with each other, and unaware of each other's existence. For example, a decentralized exchange (DEX) DApp may need to be deployed on Ethereum, BNB Chain, and Polygon networks respectively. In this way, each version of DApp is isolated from each other.

As a user, adopting multiple deployment methods can cause many difficulties. Users cannot seamlessly transfer tokens from one blockchain to another. The transfer process typically involves the asset being destroyed on the source blockchain and then re-minted on the destination blockchain using a third-party bridge. This process is time-consuming and confusing, resulting in data silos and a poor user experience. The security risks of holding assets on multiple blockchains are also high and can easily be hacked, resulting in the loss of funds.

Cross-chain interoperability solution

Developers have built multiple As a solution, cross-chain connectivity is gradually improving, making it easier to connect and transfer data and value across networks. This also opens up new possibilities for developing more user-friendly, interconnected blockchains.

There are different ways to improve cross-chain interoperability. Here we list some examples of solutions.

Chainlink

Chainlink The Cross-Chain Interoperability Protocol (CCIP) is being developed, an open source standard that supports cross-chain communication including sending messages and token transfers. The goal of CCIP is to enable universal connectivity between hundreds of blockchain networks using standardized interfaces, hopefully reducing the complexity of building cross-chain applications and services.

Wormhole

Wormhole The protocol is a universal interoperability protocol that enables the transmission of tokens and messages on different blockchain networks. Network Guardians monitor information on the source chain, verify it, and facilitate its transmission to the target chain. Developers using Wormhole can build cross-chain decentralized applications called XDApp.

LayerZero

LayerZero is a fully Chain interoperability protocol is used for lightweight information transfer between blockchains, providing safe, reliable, and trustless information transfer.

LayerZero's Ultra-Light Node (ULN) is a smart contract that provides block headers for other bridge chains to improve efficiency. ULN is only triggered on demand, and smart contracts communicate with oracles and relayers through LayerZero endpoints. This design enables lightweight and efficient cross-chain communication.

Hyperlane

Hyperlane It is a Delegated Proof of Stake (DPoS) chain protocol that verifies and secures cross-chain communications through a configurable consensus method. In Hyperlane's network, each validator is responsible for verifying each chain connected to Hyperlane to ensure the security and accuracy of cross-chain communication.

Cross-chain information transmission

Inter-chain Information Transfer Protocol (IBC) is a standard protocol for blockchain interaction in the Cosmos network, aiming to achieve interoperability between different blockchains. IBC defines a minimal set of functions specified in the Inter-Chain Standard (ICS) that define how blockchains communicate with each other and exchange data.

One example is Osmosis, a decentralized exchange (DEX) that supports users to exchange tokens across chains. . Osmosis utilizes the IBC protocol to achieve seamless cross-chain token exchange, and token holders directly benefit from the interoperability provided by IBC.

Avalanche Warp Messaging

Avalanche Warp Messaging (AWM) is designed to be more flexible, and developers can create their own information transmission specifications to support communication. The AWM specification itself requires a byte array, an index participating in the BLS multi-signature, and the BLS multi-signature. AWM makes it easier for developers to build powerful DApps on the Avalanche network.

BTC Relay

BTC Relay is a deployment An on-chain relay station in a real-time environment that supports submitting Bitcoin block headers to Ethereum. In this way, the validity of Bitcoin transactions submitted to the Ethereum blockchain is verified, creating a trustless bridge between the two networks.

Cross-consensus information format

The Cross Consensus Message Format (XCM) enables different consensus systems to communicate with each other on Polkadot. After the successful merger of XCM V3, developers can build applications that support bridging, cross-chain locking, swaps, NFTs, conditions, context tracking, and more.

For example: Moonbeam XCM SDK mainly supports XCM token transfer, and developers can use XCM to interact with the Polkadot network.

Axelar

Axelar By providing solutions for cross-chain communication using universal messaging protocols, developers can build decentralized applications that run across multiple blockchain networks. Axelar also provides users of bridge tokens with secure inter-chain communication via Delegated Proof of Stake (DPoS).

For example, Axelar’s bridge app Satellite connects Ethereum-based BUSD to Cosmos, enabling communication between the two ecosystems. interoperability.

Benefits and limitations of interoperability

Blockchain interoperability The operational benefits are obvious. Users can conduct barrier-free transactions between different blockchain networks without the need for centralized intermediaries. It also reduces fragmentation, improves interoperability within the broader blockchain ecosystem, expands business boundaries, and opens up new business models.

But these solutions also have certain limitations. Different blockchains may have different security solutions, consensus algorithms, and programming languages, adding to the technical complexity. These solutions may also make blockchains more vulnerable to attacks and generate new governance challenges across different blockchain networks.

Conclusion

Cross-chain interoperability solutions may significantly improve the efficiency and functionality of blockchain networks by enabling communication, data and value transfer between different networks.

The future development of cross-chain interoperability is expected to promote further innovation between different blockchain networks and the development of blockchain applications. New possibilities. The result is a more connected and user-friendly blockchain ecosystem.

But to achieve widespread application, different cross-blockchain interoperability solutions need to be more stable and secure. It remains to be seen which solution will provide the most efficient, stable and secure tool.

In-depth reading:

• What is a block Blockchain bridge?

• What is Layer 0 in the blockchain?

• What is Layer 1 in the blockchain?

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