What Is Cross-Chain Interoperability?

Cross-chain interoperability solutions allow different blockchain networks to communicate and transfer data or value between each other. These solutions can lead to more interconnected and user-friendly blockchain applications. Some of the leading solutions include:

1. Chainlink's Cross-Chain Interoperability Protocol (CCIP) which aims to standardize cross-chain communication.
2. Wormhole protocol that facilitates the transfer of tokens and messages between different blockchains.
3. LayerZero, a protocol for lightweight message passing between blockchains.
4. Hyperlane, a delegated proof of stake chain protocol that validates and secures cross-chain communication.
5. Inter-Blockchain Communication (IBC), a standard protocol in the Cosmos Network for blockchain interaction.
6. Avalanche Warp Messaging (AWM), which allows developers to create their own messaging specifications for communications on the Avalanche network.
7. BTC Relay, a chain relay that enables submission of Bitcoin block headers to Ethereum.
8. The Cross-Consensus Message Format (XCM) on Polkadot, allowing different consensus systems to communicate with each other.
9. Axelar's solution using General Message Passing protocol for cross-chain communication.

These interoperability solutions offer several benefits like seamless transactions across different networks without centralized intermediaries, reduced fragmentation, improved interoperability within the broader ecosystem, and new business models.

 

However, they also come with limitations such as increased technical complexity due to differences in security measures, consensus algorithms and programming languages among various blockchains; potential increase in attack probabilities; and new governance challenges across networks.

 

https://academy.binance.com/en/articles/what-is-cross-chain-interoperability

What Is Cross-Chain Interoperability? | Binance Academy