How does blockchain conduct cross-chain transactions? Blockchain cross-chain transaction method

As enterprises, large enterprises and startups are increasingly adopting blockchain solutions in their businesses; they realize that no blockchain protocol can exist or work at its best with complete exclusivity efficiency. Just imagine how efficient your email service would be if you couldn't send mail from Gmail to Yahoo or Outlook. Interoperability between multiple email ecosystems makes email services as efficient as they are today, and the same cross-chain transactions can make operating systems more efficient. Many investors still don’t know how to conduct cross-chain transactions on this blockchain? Let the editor introduce to you the cross-chain transaction method of blockchain.

How does the blockchain conduct cross-chain transactions?

Blockchain networks such as Polkadot, Cosmos, and Harmony are providing interoperability solutions for other blockchain networks. Several public blockchain networks, including Etherum, are focusing on interoperability and scalability, leveraging platforms such as Cosmos and Polkadot. Cosmos has launched the Inter-Chain Communication (IBC) protocol. It facilitates inter-blockchain communication and enables token transfers between Cosmos and other IBC-compliant blockchains. Polkadot’s inter-chain messaging protocol uses Bridges for blockchain communication. Harmony serves as an interoperability solution that connects Ethereum and Binance Smart Chain to their ecosystems.

Acknowledging the need for blockchain interoperability, even mainstream private blockchain networks such as HyperLedger, which host most enterprise blockchain applications, have moved to leveraging public blockchains such as Ethereum network. Next, let’s try to understand how blockchain interoperability solutions leverage cross-chain technology.

Why is cross-chain technology important?

As the blockchain industry expands, we are witnessing the launch of new blockchain protocols, each with unique approaches, new consensus protocols, and a whole new set of capabilities to host different s application. However, they are all growing in parallel and not scaling to the next level because the very basic architecture of blockchain forces them to operate within silos. This is creating separate ecosystems that cannot interoperate. Cross-chain technology is important because of its potential to promote blockchain interoperability. Let’s understand why blockchain interoperability is needed through an example.

Blockchain interoperability is needed to overcome the limited capacity of blockchain protocols and enable greater scalability, faster block times, and greater security. Explainability will also help reduce operational costs associated with blockchain solutions. Listed below are some of the blockchain limitations that result from poor or no blockchain interoperability.

The above content is the editor’s detailed elaboration on how to conduct cross-chain transactions in the blockchain. For blockchain to gain adoption across multiple industries, interoperability is a must. The need for interoperability goes beyond exchanging crypto assets across blockchains. But going forward, it must also facilitate the sharing of other information, such as health records, supply chain records, certificates, and more. Cross-chain solutions are still emerging, and they serve as an encouraging sign that they are feasible and herald better blockchain interoperability solutions in the future. With different blockchain protocols and tech giants envisioning a path to blockchain disruption through interoperability.

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