Current Solutions for Blockchain Interoperability

Peace be up you my dear friends, how are you all? I hope that by God's grace and mercy you are all well. Today I'm here to try a very informative blog with you, so let's get started without wasting anytime.

Blockchain technology has achieved a lot of growth. With the inception of newer blockchains each with different characteristics and purposes, the need for interaction or communication between these disparate universes has also grown.

^{Image by Gerd Altmann from Pixabay}

Blockchain interoperability enables the movement of assets among different blockchain networks. In this post I have elaborated different solutions for blockchain interoperability.

Cross Chain Bridges

One of the ways that people find the problem of blockchain interoperability is by the use of cross chain bridges. They enable movement of assets and data across two or more blockchains. They work by locking assets on the source chain and minting its equivalent on the target chain.

Example: The Bsc Bridge is a tool available in the trust wallet that enables the transfers of bnb assets, and returns them in bsc from other networks which also include Ethereum. Users are able to lock tokens in the Ethereum blockchain and purchase BEP20 tokens on BSC.

Challenges: There is the problem of security that cross-chain bridges encounter. In the case where the system is attacked then all the funds can be lost. Moreover they have more transactions fees.

Polkadot’s Relay Chain

Parity technologies developed this project. It is one of the most remarkable projects directed towards the problem of blockchain interoperability. A unique architecture is used where other blockchains called parachains are attached to one main Relay Chain. Sharing of security, governance, consensus and interoperability are all done through the Relay Chain.

Mechanisms: Parachains with the adjoining Relay Chain are able to converse with one another in this outreach. This configuration facilitates the cross-chain interactions that do not involve sophisticated bridges.

Strengths: The features of Polkadot architecture is that it is very advanced in its scalability and security, and its cross-chain capabilities are also very efficient in terms of latency. There are also heterogeneous chains, for example, if we have parachains, they can use different consensus mechanism and still communicate.

Challenges: The main problem is that there is an added complexity with Polkadot as our consumers demand. In addition, the notion that all the parachains must participate in a bidding process in order to gain access to a slot could also adversely affect smaller sized projects.

Cosmos and the Inter-Blockchain Communication (IBC) Protocol

The term Cosmos refers to the Internet of Blockchains and it’s another leading interoperability solution which enables disparate blockchains. It referred to as zones to be connected to Cosmos Hub which is the center of all transactions.

IBC Protocol: This protocol is the primary geographical referendum on the core objectives set forth by the seekers at the dream end of ICT for society attributed to specific IBC aims. Such block chains allow a transfer of tokens, information and messages between different networks across the globe with no central control.

Strengths: It becomes affordable and easier for an active investment or alternative pointers characteristic, secure and offering an affordable and expandable interoperability network. The design of IBC is such that it is possible for any blockchain to incorporate IBC architecture for purposes of cross chain protocols.

Challenges: While Cosmos has made significant facilities but the widespread adoption of IBC is still in progress. Furthermore, the Cosmos ecosystem is relatively young. It means it may take time for a diverse range of blockchains to fully integrate IBC.

^{Image by Gerd Altmann from Pixabay}

The Solution of Wanchain Cross-Chain Technology

Wanchain focuses on bridging different blockchain platforms including transaction capabilities. It does this by employing smart contracts in conjunction with secure multiparty computation for the purposes of managing cross chain transfers.

Mechanism: In achieving this, Wanchain nodes use a technology known as sMPC to secure the chain’s assets and validate the transactions among various chains, thus preserving decentralization of the process.

Strengths: Wanchain has developed a unique, secure and portable interoperability solution for the private or public blockchains. sMPC helps increase security as it is harder to rent a large number of nodes to perform verification.

Challenges: Even though it has numerous advantages Wanchain’s’ solution seems to be quite sophisticated and robotic integration may be of higher order than the prevailing standard. Furthermore, the adoption and scaling of the application are also undergoing various tests.

Atomic Swaps

Atomic swaps are a direct means of dealing with cryptocurrency exchanges on different blockchains without involving a third party. Their smart contracts allow exchanges to either take place in full or not at all hence the word atomic.

Example: Using lightning, users of exchange can perform swaps between BTC and LTC using a non-centralized system.

Strengths: Atomic swaps are a decentralized solution that does not require intermediaries as there is no reliance on trust. These concepts are inherently secure as they are carried out through the use of smart contracts.

Challenges: Atomic swaps allow great potential but at this stage, are rather limited in regards of use as they allow trading only specifically designed for same feature blockchains i.e. Bitcoin chains. User faces a problem with interacting with atomic swaps interfaces. There is no intuitive way to understand how to use them.

Conclusion

Efficiency of ever growing decentralized world without borders depends on cross-chains integration. Cross-chain solutions using bridges, Polkadot's Relay Chain, Cosmos' IBC, Wanchain and atomic swaps are useful tools to bridge different blockchains however limitations exist for each.

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@malikusman1