A distributed ledger system, as we know, is the foundation of the blockchain ecosystem.
However, the current blockchain system is not a cumulative platform, which has some drawbacks. Different blockchain systems operate in isolation, preventing communication between them. When addressing these issues, cross-chain technology is one such innovation that can provide the necessary solutions.
Plug Chain and Cross-Chain Communication
PLUG Chain is a high-performance public chain dedicated to solving information and data interaction. Its purpose is not only to realize the safe, smooth and efficient intercommunication between blockchain and real-world information and data, but also to realize the intercommunication among public chain intelligent contracts such as Polkadot, BSC and Heco through cross-chain technology.
Its decentralised network allows chains to communicate and interact without a centralised exchange, all connected in a digital world.
Even as the crypto world awaits the full potential of cross-chain interaction and other concepts of Blockchain tech in the industry, projects like Plug Chain, Cosmos and others are critical to the achievement of these objectives.
What is cross-chain technology?
It’s clear that cross-chain technology is the most efficient means of enhancing interoperability between different blockchains. One of the latest innovations in blockchain technology, it allows for transferring data and value between two or more blockchains.
A number of key issues have emerged due to the rapid growth of some of the most common networks, such as Bitcoin, Ethereum, and Solana. A user can trade their tokens on the blockchain thanks to these networks. Still, there are a number of underlying monetary and technical limitations that must be considered as the network grows. People rarely reap the full benefits of new technology because of these limitations, which prevent these chains from working together. Cross-chain technology, on the other hand, solves these issues by facilitating blockchain interoperability and allowing users to communicate and exchange data.
As a result of the cross-chain protocol, data can be exchanged between multiple blockchains and protocols. Thanks to the cross-chain protocol, users can communicate without the need for intermediaries. This means that blockchains with similar networks can exchange value and data. The cross-chain technology has the following key features:
● In cross-chain technology, atomicity is vital
● Integrity of multiple blockchains linked together
● Networks spread across multiple platforms
What is the significance of cross-chain technology?
Using cross-chain technology allows users to trade tokens and share data without the need for an intermediary. Interoperability between blockchains is made possible by this infrastructure, which allows multiple blockchains to improve their efficiency while balancing centralization and security.
As a result, it’s critical because it increases chain efficiency, reduces segmentation, and makes it easier for users to communicate with each other across different blockchains.
There is a lot of potential for cross-chain technology to enable blockchain interoperability that could solve many issues and remove multiple constraints on blockchains.
Is there a mechanism by which cross-chain technology operates?
In order to avoid the need for third-party integrations, each network uses a different system for blockchain interoperability. The following are some of the most widely accepted methods for conducting isolated transactions across multiple chains.
Atomic Switches
These are intermediaries that facilitate the exchange of tokens between two parties on various blockchains. There is no need for a centralized third party to facilitate trades in this type of mechanism. Instead, the user is able to trade their tokens directly with other users.
There are two possible outcomes here: the processor is either completed, or it isn’t started at all. For example, two parties may decide to limit the atomic swap to one hour. Even if all the conditions are not met, the original owners will receive their deposited tokens at the end of the one hour. Professional blockchain developers, on the other hand, would find it simple to use.
Relays
Blockchains use relays to keep tabs on other chains’ transactions and events. A single contract can act as a central client for multiple chains without the involvement of distributed nodes because they work chain-to-chain. On-demand, it is possible to check the entire transaction history and specific central headers this way. The relay approach necessitates a significant investment in both operational and security costs.
Why is cross-chain technology necessary?
In addition to bringing blockchain interoperability, the use of cross-chain mechanisms has numerous other advantages
● Bringing together two separate blockchains
Using cross-chain technology makes it possible to communicate and connect two different blockchain networks in an efficient manner. The ability to grow more easily. In contrast to current blockchain mechanisms, cross-chain technology provides greater scalability because of its ability to interoperate.
● Token and data transfer efficiency has been improved.
A user must send instructions from the source chain in order to use the current mechanism.
Upon receiving these instructions from the validator, the relayers transmit the instructions to the destination chain.
● limiting the power of large corporations to monopolize
By preventing large corporations from monopolizing the market, cross-chain technology contributes to a more stable market environment. Projects such as Polkadot, Blocknet, Cosmos, and Wanchain are among the most popular cross-chain initiatives.
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