Cross-Chain Communication

Cross-chain communication between blockchains ensures that transactions between different network protocols are validated and completed without the need for any center.

What Is Cross-Chain Communication?

Cross-chain communication between different blockchains is essential to guarantee and maintain decentralized functionality, which is one of the foundations of blockchain technology. It is also very important for users who have assets in different blockchain networks to manage their funds more easily. The encryption methods of different protocols and the technologies that their tokens are connected to are different from each other. So, what do you need to do when you want to buy crypto from a different blockchain network with your one cryptocurrency?

Because blockchain projects ultimately have very different structures from one another, it is sometimes very difficult to exchange data between chains without additional software or third-party intervention.

For this reason, the demand for inter-chain communication methods is increasing and studies in this field have been accelerated.

Learn more about the term ”cross-chain”

Atomic Swaps

Atomic swaps are the most popular cross-chain communication tool for blockchain developers and users in the crypto world. Atomic swaps are not like buying cryptocurrency on an exchange. Essentially, an atomic swap is a secure and fast transaction that allows parties to transfer tokens from wallet to wallet via a private smart contract. This process allows parties to exchange cryptocurrencies directly without interference from any other person or institution, as it eliminates the need for third-party exchange.

Stateless Simplified Payment Verification (SVP)

Stateless Simplified Payment Verification (SVP), on the other hand, is a different cross-chain communication tool. With SVP, the validity of transactions is predicted without the need for blockchains to store transaction-related information.

In this process, blockchains can communicate with each other without having to exchange large amounts of data.

Effects of Lack of Cross-Chain Communication

The inadequacy of inter-chain communication between different systems stands as a major obstacle for the blockchain system to reach its own capacity. The more these processes evolve, the more applications will be in front of blockchain developers. Additionally, users of cryptocurrencies will be able to greatly benefit from increased transaction processing speeds and ease of transactions.

Learn more: Cross-Border Trading and Crypto World