Interoperability in the blockchain space refers to the ability of two or more blockchains to communicate with one another and share data between each other. We have seen blockchains for various use cases as the blockchain space continues to grow, but what if one blockchain could leverage the functionalities of another blockchain to maximize its utility? Achieving this would unlock the potential of what the blockchain space as a whole has to offer for the simple reason that the end-user can benefit from the collective value of all the blockchains in the space. In this article, we will take a look at how blockchain interoperability ensures decentralization, current methods that are being explored to achieve interoperability, and an exciting project that is making waves in the blockchain interoperability field.
Interoperability Ensures Decentralization
Out of the three problems that make up the blockchain trilemma of interoperability, scalability, and throughput, blockchain interoperability is the issue that, if solved, will ensure the decentralization of the blockchain space in the future.
Currently, the blockchain space is dominated by a handful of projects such as Ethereum, Solana, Bitcoin, etc. In order to have a decentralized blockchain future, the blockchain community needs to lower its reliance on the current largest blockchains. One way this can be done is to make it easier for the end-user to access all of the benefits of every blockchain in the space. This can be done if data and information from one blockchain can securely be shared with multiple other blockchains. In doing so, the user will also have access to benefits from a blockchain that may not even have known about. This will create a more fair and almost equal distribution of end-user dependence on all of the connected blockchains, creating and ensuring a more decentralized future in the blockchain space. Let’s take a look at how blockchain interoperability can be achieved with some of the protocols currently in the market.
Current Protocols For Blockchain Interoperability
The main protocols used in blockchain interoperability are blockchain bridges, peg zones, and light nodes. Each of these protocols works together to enable true cross-chain communication.
Blockchain Bridges
A blockchain bridge is a connection that enables the transfer of digital information such as tokens and or arbitrary blockchain data between two blockchains. Both blockchains can have different consensus, rules, and governance models, but the bridge provides a compatible way to interoperate securely on both sides. Although there are various types of bridges, they can be broken down into two classes: trusted and trustless. Trusted bridges require that the end-user rely on an intermediary to facilitate the cross-chain transaction. Trustless bridges are the opposite. They are decentralized and rely solely on the mathematics and algorithms used in the bridge’s code to facilitate the transaction.
Peg Zones
Peg zones are blockchains that track the state of other blockchains in order to establish finality for the probabilistic blockchain it bridges so that it can be compatible with the Inter-Blockchain Communication Protocol.
Light Nodes
A blockchain network consists of several nodes that each play a part in the transaction processing as well as the network maintenance and security of the blockchain network. One type of node is a light node. Light nodes do not store all of the information of a blockchain but instead store subsets of the blockchain data. Light nodes and peg zones work together in blockchain interoperability. Light nodes rely on the peg zones to relay the entire histories of the connected blockchains to them. Any blockchain that supports light nodes can then connect to a bridge to allow for an inter-connected blockchain protocol.
One Project Focusing On Interoperability
One exciting project in the blockchain interoperability space is CORE MultiChain. CORE Multichain is a blockchain ecosystem that enables any connected blockchain to scale and communicate with other blockchains through a true cross-chain communication protocol. This cross-chain protocol combines the three protocols mentioned in this article (bridges, peg zones, and light nodes) to offer a seamless communication protocol for any private and public blockchains.
One thing that makes CORE MultiChain different from all other blockchain interoperability solutions is the use of ZK-Snarks. ZK-Snarks is a protocol that achieves zero-knowledge, succinctness, soundness, and completeness within the CORE MultiChain ecosystem. By implementing ZK-Snarks in their interoperability protocol, CORE MultiChain has significantly optimized the data storage specifications needed for a scalable cross-chain communication protocol.
