In this post, you will learn what is Cross-Chain technology in blockchain, and why is it important?
The number of blockchain projects is growing in part because developers are thinking outside the box, trying to exploit the possibilities of the technology. The increase is also due to the recognition that no perfect solution can meet all blockchain needs at the same time.
Among the proliferation of blockchain projects, one thing stands out. All blockchains, as well as registries and DAGs, perform different sets of transactions and process different amounts of data. It is also becoming increasingly clear that there are various networks and blockchains dedicated to specific trade unions, religions, civil society organizations, as well as government departments.
The rapid development of the blockchain should lead to the emergence of many types of chains. One such technology that is becoming more and more obvious is the Cross Chain technology.
What is cross-chain technology?
Cross-chain technology is becoming the main subject of debate regarding the final answer to the question of improving the interoperability of the blockchain. Simply put, cross-chain technology is a relatively new concept that aims to transfer value and knowledge across separate blockchain networks. Cross-chain swap DEX, sometimes referred to as atomic swap, is a smart contract technology that permits the exchange of tokens across two distinct blockchain ecosystems.
While the increased use of existing networks such as Ripple, Bitcoin, and Ethereum is a positive thing, it has created many problems, chief among which are the economic and technological limitations of scaling. As stated earlier, most blockchain networks operate in separate ecosystems to satisfy a specific set of requirements.
The isolated feature of cross-chains has basically prevented individuals from taking full advantage of distributed ledger technology. Due to the complexity of different blockchains interacting with each other, people cannot take full advantage of blockchain technology. Cross-chain technology aims to solve all of these problems by providing interoperability between blockchains, allowing them to interact and share information more easily.
Cross-chain is the ability of two relatively independent blockchains to interact with each other. In other words, it allows blockchains to interact with each other due to their uniform design. A single chain’s drawbacks are alleviated by using cross chains.
Interstrand contact can be classified as isomorphic or heterogeneous, depending on the underlying technology. For isomorphic chains, the security method, consensus process, network architecture, and block creation verification logic are consistent, making the interaction between chains very easy.
Cross blockchain compatibility
The Internet Protocol allows the transfer of value and information over different networks. Combined with the benefits of decentralized public networks, these protocols should form the basis for the widespread adoption and use of blockchain.
Inter-block compatibility allows data to be exchanged between blockchains without the need for intermediaries. This means that blockchains with comparable networks will be able to exchange value.
When used in a business ecosystem, companies will no longer be limited to communicating with customers on the company network. Instead, businesses will be able to transact with customers on other suitable blockchains. The entire procedure will take place in real-time, with no downtime or costly transaction fees. As with the Internet of Value, blockchain interoperability will allow blockchain networks to transfer value efficiently