Inter-blockchain communication, also known as cross-chain communication, is the process of allowing different blockchain networks to communicate and exchange information with each other. This is a crucial aspect of blockchain technology, as it allows for the creation of a decentralized ecosystem where different blockchains can interact and work together. There are several technologies being developed to solve this issue. Here are the most promising projects:
One key difference between inter-blockchain communication and traditional communication between different networks is the use of atomic swaps. Atomic swaps are a type of smart contract that allows for the direct exchange of cryptocurrencies between different blockchain networks without the need for a third party intermediary. This allows for seamless and secure transfers of assets between different blockchain networks.
Modular vs Monolythic Blockchains
Another important aspect of inter-blockchain communication is the use of modular vs monolithic blockchains. Modular blockchains, also known as sidechains, are separate blockchain networks that are connected to a main blockchain. This allows for the creation of specialized blockchain networks that can perform specific tasks without clogging up the main blockchain. An example of a project utilizing modular blockchains is the Cosmos Network (ATOM), which uses the Tendermint Byzantine Fault Tolerant consensus engine to connect multiple independent blockchains, called "zones," into a single decentralized network, called the "hub." Celestia is another project that is utilizing modular blockchains to create a decentralized network of interoperable blockchains with better scaling.
Monolithic blockchains such as Ethereum, on the other hand, are single, all-encompassing blockchain networks that are not easily scalable or adaptable.
One project that is working on enabling inter-blockchain communication is Chainlink, a decentralized oracle network that connects smart contracts to real-world data. Chainlink recently introduced the Chainlink Community Improvement Proposal (CCIP) which allows for the submission and voting on proposals for improving the Chainlink network. This allows for a decentralized, community-driven approach to the development of the Chainlink network.
Another project that is focused on enabling inter-blockchain communication is CoinWeb. CoinWeb is a blockchain interoperability platform that allows for the creation of a decentralized internet where different blockchain networks can communicate and exchange information with each other. This allows for the creation of a seamless and decentralized ecosystem where users can access a wide range of services and applications without the need for central intermediaries.
In conclusion, inter-blockchain communication is a crucial aspect of the development of a decentralized ecosystem. By allowing for the communication and exchange of information between different blockchain networks, projects like Cosmos, Chainlink and CoinWeb are helping to pave the way for a more open and decentralized future.
A great quote by Harry Alford reflecting how inter-blockchain is greater than the sum of its parts:
"In Web2, the bigger network wins. In Web3, whoever builds the biggest network together wins."
More on Proof of Reserves in the next article.