One of the most critical challenges for blockchain is to facilitate interoperability across networks. It’s often said that multichain or cross-chain is the future, because of the importance of being able to easily move data from one platform to another to provide greater utility and encourage participation.
Blockchain interoperability refers to the ability of two separate networks to interact with one another with minimal friction, so users can send assets and messages across the two platforms with ease. For most networks, this is not an easy thing to do. For instance, Bitcoin holders cannot easily transfer value to someone on the Ethereum, Avalanche or Polkadot blockchains. It involves using complicated asset bridges that are not just clunky, but also seen as big security risks. Yet if it were possible for users to do this easily, blockchain would become much more useful and provide far greater value.
Consider the global economy today, which is built on supply chains that are often compared to one, vast and interconnected network. This network facilitates the flow of goods, information and money across international borders and has helped to grow economies and enrich the lives of billions of people across the world.
To deliver similar benefits, blockchains must become just as integrated. By making digital assets more portable, they will become much more useful. Thankfully, there are a number of projects that are hard at work making interoperability a reality.
RocketX
The RocketX protocol is determined to unite every single blockchain network to enable instant value transfers across any network through a simple and user-friendly protocol that can be integrated into any dApp.
RocketX likens itself to a kind of crypto search engine and helps users to buy and sell digital assets with a couple of clicks, regardless of what chain they’re hosted on. Similar to an aggregator, the protocol is uniquely able to tap the liquidity of hundreds of centralized and decentralized exchange platforms to access over $100 billion in global liquidity and provide users with the best possible price. Users also have the flexibility to select which trading venue they wish to access, so they can instead prioritize their transactions based on processing time, slippage or protection from Miner Extractable Value.
Developers can also utilize RocketX, as it recently announced the beta launch of its developer API that allows for its asset exchange services to be integrated with any dApp.
The project claims to be compatible with more than 113 blockchain networks, but it isn’t done yet, as it has ambitions to support more than 200 chains.
Flare Network
Flare Network intends to enable more than just cross-chain transactions, but also the free transfer of data across chains too. Its goal is to provide trusted on- and off-chain data to every network, so developers can build more useful applications that interact with real-world events.
The protocol enables these interactions through two unique mechanisms. Flare’s State Connector enables neutral validators to reach consensus on real-world events that occur off-chain, such as sports results and the latest movements in the stock exchange, for example. In this way, developers can build a decentralized betting application that will pay out instantly when the final scores come in. Or they could build a decentralized trading application that ensures the most up-to-date prices. State Connector uses a network of independent attestation providers, who are offered strong incentives for their honesty so a consensus is reached.
As for the Flare Time Series Oracle, this is the protocol’s key mechanism for blockchain-to-blockchain communications. It is decentralized, acting as a time-series-based data feed that any dApp can access. The information, which can include cross-chain transactions and asset prices, is verified by an incentivized network of data providers to ensure it’s always accurate.
The two protocols can be used in concert to enable cross-chain transactions. It previously demonstrated how it’s possible to purchase an NFT based on one blockchain, using DOGE tokens from the Dogecoin chain.
ApeX Pro
As one of the leading non-custodial trading platforms for cross-margin perpetual contracts, Apex Pro is focused on increasing accessibility to the perpetual swap market. It’s based on a traditional orderbook model, and is focused on enabling high-speed, cross-chain transactions across multiple networks to ensure the most convenient trading experience.
One of its most notable features is its extensive multi-chain support. ApeX Pro is compatible with popular chains including Ethereum, Arbitrum, Avalanche, Binance Smart Chain (BNB), Polygon, and Optimism. Users can therefore use funds on any one of these chains to purchase assets on the other, and it can be done with minimal friction. This kind of cross-chain interoperability is vital for any trading platform so its users can gain a competitive advantage and look for arbitrage opportunities.
ApeX Pro’s commitment to interoperability extends to include a high number of access points and terminals across DEX platforms. It also supports multiple digital wallets, ensuring even greater accessibility for traders.
Chainlink
Another extremely promising interoperability project is the aptly-named Chainlink, which enables blockchains to link themselves any other network, including non-blockchain platforms. Like Flare Network, it provides a way for decentralized ledgers to obtain real-world data such as asset prices and news events..
Chainlink has created a comprehensive and decentralized network of data oracles that use hybrid smart contracts. Node operators are required to stake a number of LINK tokens, which serve to encourage honest behavior. These nodes can then define their own fees according to the demand for their data.
In this way, Chainlink’s protocol enables any blockchain to exchange data with its peers and off-chain systems in a way that’s fully tamperproof. Uses cases include NFT distribution across multiple chains, cross-chain swaps for DeFi and recalibration of cryptocurrency token supplies, among others.
By making it possible for blockchains to exchange data with each other and off-chain systems in a tamper-proof way, Chainlink can support many use cases. For example, it has been used to distribute NFTs across chains, recalibrate cryptocurrency token supplies and facilitate cross-chain swaps in DeFi.
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