This Blockchain Is Finally Fixing Cross-Chain Bridges
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Much has been written about the importance of blockchain interoperability, which refers to the ability of two or more independent networks to exchange data and value. It’s a fairly straightforward concept, but it’s one that has proven extremely elusive in the real world. However, it is absolutely necessary to implement if blockchain is ever going to live up to its full potential.
The open and decentralized nature of blockchain has resulted in an explosion of networks. Today, there are easily more than 100 blockchains up and running, and they all exist independently of one another with no way of communicating. Because these networks can’t communicate, it’s impossible for a user on the Bitcoin blockchain to interact with someone on the Ethereum network, and vice versa.
In an interview with Bitcoin.com News, Flare Network co-founder and Chief Executive Hugo Philion highlighted the problems this lack of interoperability causes, and how it places a major obstacle in the way of mass adoption. He explained that while DeFi has become the biggest use case of blockchain today, it is severely handicapped by the lack of communication between networks.
“The lack of adequate cross-chain communication has constrained the size, participation, and efficiency of the Defi market,” Philion said. “Not only have existing designs resulted in the loss of billions of dollars of capital, but they are also hard to use, limiting participation to more sophisticated users. As a result, market size, liquidity, and returns have been constrained.”
With users unable to swap Bitcoin for Ethereum without going
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