Beyond bridges: A look at the next generation of multichain communication

cointelegraph.com:

Achieving seamless interaction between different Layer-1 networks is critical to realizing the full potential of blockchain solutions and accelerating global adoption. However, the decentralized nature of blockchain creates complex hurdles, making it difficult to overcome silos.

The lack of interoperability is hindering blockchain adoption because of multiple existing limitations, including:

The market is well aware of the importance of interoperability, with cross-chain solutions taking center stage during the last few years. However, the most popular solutions turned out to be the most vulnerable point. The so-called bridges, which facilitate the communication between Layer-1 networks, have been constantly attacked by hackers and other malicious actors exploiting the loopholes of this new infrastructure.

In 2022, about 50% of all blockchain exploits in decentralized finance (DeFi) were related to bridges, as per Token Terminal data from October last year. During the same month, blockchain analysis firm Chanalysis estimated that about two-thirds of funds lost due to hacking attacks in the blockchain space were related to bridges.

Source: Chainalysis.

North Korean-linked hackers alone are estimated to have stolen about $1 billion worth of crypto in the first three quarters of 2022, with bridges being the most targeted point.

Bridges have done a great job at showing the way, but they’re not the ideal solution to achieving interoperability. Most bridges employ the so-called notary model to facilitate communication between two different chains. This model implies a trusted third party to handle cross-chain transactions by verifying and forwarding them. While multisignature notaries should be more secure than single-signature