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Is 2023 the year genuine cross-chain interoperability takes off?

Is 2023 the year genuine cross-chain interoperability takes off?


The future of blockchain will be characterized by interoperability, breaking free from “chain tribalism,” and eliminating cross-chain bridge hacks, according to executives at Korea Blockchain Week. Several products set for release before the end of the year could revolutionize blockchain interoperability, moving away from current solutions that are seen as vulnerable to hackers. Vance Spencer, co-founder of Framework Ventures, believes that with upcoming solutions like Chainlink’s Cross-Chain Interoperability Protocol (CCIP), it will no longer matter which blockchain a project uses. Interoperability protocols will hold more value than layer-2 solutions in the long run. In the future, the focus will be on whether contracts can communicate with each other, rather than the specific roll-up being used. Products like CCIP and ZetaChain offer cross-chain interoperability by enabling assets on one chain to interact with contracts on another through cross-chain messages. The goal is to establish interoperability as a standard, minimize chain tribalism, and emphasize utility. The industry envisions a future with hundreds of chains, capable of handling significant economic activity. This diversification is essential to scale beyond the limitations of a single blockchain, which may not handle more than 10 million transactions per day. However, current cross-chain bridge solutions are often fragmented and insecure, presenting an attractive target for hackers. Router Protocol plans to introduce a new solution that mitigates this risk by using liquidity from multiple wallets. This peer-to-peer transfer system eliminates the need for locked liquidity on bridges. Immediate cross-chain interoperability is crucial for the industry to demonstrate real-world use cases and establish legitimacy. Connecting Web3 apps to various blockchains seamlessly is essential for user experience. Chainlink’s Sergey Nazarov believes that reliable and safe use of systems across multiple blockchains is necessary for the industry to gain credibility. The banking system offers potential for the next level of Web3 adoption, but technical and legal barriers hinder the connection between banks and public blockchains. Chainlink aims to bridge this gap to allow the flow of value into the public blockchain world.