How Cross-Chain Technology Support Blockchain Interoperability?

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For the past few years, we have come across a significant amount of blockchain use cases in multiple fields. In the beginning stages, the usage of blockchain was only in transactions. Over time, Blockchain development and integration in enterprises becomes inevitable as it helps to improve scalability and efficiency. 

Each blockchain framework is separated from the other and is developed by keeping a specific set of use-cases in mind. 

A cross-chain is the interoperability between two blockchain frameworks. This facilitates a trade-off of their features, security, efficiencies, and decentralization among different blockchains. As a result, the customers can easily float from one blockchain to another. 

How do blockchain interoperability solutions strengthen cross-chain technology? Let us find out! 

Cross-Chain Technology – Definition

As the size of the blockchain industry is getting extended, we get introduced to different blockchain protocols. Each of them has unique characteristics, consensus mechanisms, and capabilities. 

Due to blockchain limitations, the users cannot be able to bring interoperability and has to depend on a centralized system. Under such circumstances, cross-chain technology helps to enable blockchain interoperability to achieve higher scalability, security, and efficiency. 

How Does Cross-Chain Work?

There is no standard working procedure for cross-chain as different blockchains use different approaches toward interoperability. We have discussed some of them below. 

  • Federations

A selected team of trusted parties can support federations to confirm the actions of one chain on another. Even though federations are potent, it demands trust in a third party. Thus, it breaks the primary feature of blockchain- decentralization. 

  • Merged Consensus

A relay chain will be used to enable two-way interoperability between blockchains. It does not depend on any off-chain data and works completely on on-chain data. 

  • Relays

Relays allow a chain to verify the events that occur in other chains. They work on a chain-to-chain basis without depending on trusted distributed nodes. So, we can eliminate the relevance of distributed nodes by allowing each chain to understand its respective chain.  

  • Atomic Swaps

This isn’t an actual cross-chain communication method. However, this mechanism enables peer-to-peer transactions across different blockchain networks. Atomic swaps help users to have total control over their transactions without depending on any regulated exchanges. 

End Note

Not just swapping crypto assets, interoperability can do much more than that. We can transmit data, perform transactions, and more across different blockchains. Cross-chain is still emerging, and it may play a lead role in the future of blockchain interoperability. 

Are you looking for a reliable blockchain development service company to acquire tailor-made blockchain solutions for your business? Consult with our experts!


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