In-depth analysis of the working principle of blockchain cross-chain technology

We know that in recent years, the development of blockchain has been very hot, and with the continuous development of blockchain technology, more and more funds have begun to enter this field, and more and more people have invested in this field. Companies researching blockchain technology and developing applications have also emerged. However, the development of blockchain technology is still in its infancy, so in the short term, the technology cannot be well applied to large-scale businesses. The reason is the problem of information islands. The data information of each chain cannot be interconnected, so cross-chains appear. So what is the principle of cross-chain blockchain? Let the editor introduce to you the principles of blockchain cross-chain.

What is the cross-chain principle of blockchain?

The current cross-chain technology can be divided into three types, namely: notary mechanism, side chain/relay, and hash locking.

The notary mechanism is a mechanism for verifying specific events on chain Y through a group of trusted nodes, and is used for chain X. A typical notary mechanism is Interledger, proposed by Ripple Labs. The Interledger protocol is suitable for various accounting systems and can handle the differences between accounting systems. The goal of this agreement is to establish a unified global payment standard and create a unified protocol for online financial transmission.

The Interledger protocol enables free currency transmission between two different accounting systems by introducing a third-party "connector" or "validator". The role of the connector is to use cryptographic algorithms to create custody of funds for the two accounting systems, so that transaction participants do not need to trust the connector. A transaction will only take place when all parties agree on the transaction. The introduction of this protocol removes the need for trust between transaction participants so that funds cannot be lost or stolen by the connector. Therefore, this kind of transaction does not need to rely on the protection of legal contracts or excessive review, greatly lowering the threshold for participation.

Sidechain technology is a new blockchain technology based on anchoring tokens on the original chain. For example, the U.S. dollar could be pegged to gold. When chain X is able to verify data on chain Y, it can be called a sidechain. However, currently side chains still face some difficulties in establishing cross-chain smart contracts on their chains, which limits its development in the fields of stocks, bonds, derivatives and other fields. BTC Relay is considered the first project to implement blockchain sidechains.

BTC Relay is an Ethereum smart contract-based solution that enables users to verify Bitcoin transactions on Ethereum by connecting the Ethereum and Bitcoin networks. The working principle is to use Ethereum smart contracts to create a simplified version of the Bitcoin network to obtain data from the Bitcoin network. Relay technology is a technology that transfers tokens on the original chain to the original chain address and temporarily locks them. The transaction results on the relay chain will be voted by the signers to determine whether they are valid. Common relay technologies include Polkadot and COSMOS. In contrast, side chain/cross-chain technology introduces third-party intermediaries and does not achieve decentralization well.

Hash locking is a mechanism that utilizes time locking to complete transactions by generating cryptographic hash value proof before the agreed time. It originated from the Lightning Network, but its functions are relatively limited. It can support cross-chain asset exchange and asset mortgage, but it cannot realize cross-chain asset transfer and contract functions.

Cross-chain application of blockchain

Take Cosmos as an example. Its blockchain is mainly composed of two parts: Hub (hub) and Zone (partition). Each Zone and Hub is an independent blockchain, and multiple Zones can be connected under each Hub. Zone is a blockchain designed to solve specific application needs, while Hub focuses on processing cross-chain transactions between Zones. Hub plays the role of a relay chain in this system. It allows existing blockchains such as BTC, ETH, etc. to be accessed in the form of Zones, and realizes communication between different Zones through Hub and IBC (Inter-Blockchain Communication) protocols. Communication. The advantage of this is that it improves scalability and interoperability without changing the original consensus and token system. By connecting different blockchains into the Cosmos network, users can transfer and trade assets between different blockchains through cross-chain transactions. This interconnection capability provides users with more choices and flexibility, and also provides greater possibilities for the development of the entire blockchain ecosystem. All in all, Cosmos achieves interconnection between different blockchains through the Hub and Zone architecture and the support of the IBC protocol. This design allows each blockchain to maintain independence while enabling cross-chain transactions, bringing greater development potential to the entire blockchain ecosystem.

At the same time, new blockchain projects can also easily use its infrastructure to build new chains in Cosmos, reducing research and development costs. Generally, a blockchain is divided into three layers from top to bottom: application layer, consensus layer and network layer. When building a blockchain on Cosmos, the consensus layer and network layer are universal. Developers do not need to worry. The application layer can use Cosmos The provided Cosmos SDK development tool divides the application layer into several modules. Developers only need to develop their own specific functional modules, and other general modules can be used directly. This is equivalent to the SaaS model in the blockchain industry. Common functions are available and used, and special functions are developed by oneself. If ETH launched smart contracts so that everyone could issue coins, then Cosmos has made it possible for everyone to issue chains.

In terms of security, Hub ensures security through a decentralized certifier group. The certifier group has a fine custody mechanism. It is a multi-asset distributed ledger, which is a multi-asset proof of equity encryption. Currency network, and is responsible for ensuring that the total amount of assets remains unchanged while various types of assets are transferred in different zones.

To put it simply, the implementation principle of Cosmos is like a mobile phone system. Hub is the system. Each chain currently on the market is equivalent to App. Developers can connect App to the system and interact with this system. Interact with other connected Apps, and these Apps can be integrated to form a huge ecosystem.

If cross-chain technology wants to achieve real large-scale commercial applications, in addition to realizing data information interconnection between various platforms, it must also realize value interconnection between different blockchains. Only in this way can we achieve real large-scale commercial applications. It can solve the "island situation" among the current blockchain projects.

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