Crypto Research

The cross-chain technology

Jun 15, 2021

In this article, we take a look at the unique technology behind some of the emerging topics in the crypto marketplace. This fascinating technology is called “cross-chain integration”.

Since Bitcoin first appeared in 2009, the blockchain ecosystem has evolved a lot. Even if innovation is the future of the digital ecosystem, much remains to be done to be fully integrated into existing systems or centralized networks. Each coin has its own blockchain. Bitcoin has its own blockchain, as does Ethereum. At the moment, the various blockchains in existence are probably best described as "stand-alone". Cross-blockchain integration will allow users to operate through a variety of different chains.

Before we get into that, let's take another quick look at what a blockchain is. A blockchain is a sequential stream of data that is verified by a consensus of computers called nodes that make up the network. Each record is called a block. Blocks are grouped transactions that are sequentially recorded in the blockchain. And these blocks are linked to one another and cryptographically secured so that each new data record is unique and tamper-proof.

Cross-chain technology will enable blockchain interoperability, which means that information can be exchanged across different independent blockchain systems or networks. This would mean, for example, that you could send coins from an Ethereum blockchain to a Bitcoin blockchain.

In general, depending on the underlying technology, cross-chain interactions are divided into two main types:

Isomorphic cross-chain: The functions of these cross-chains, including the consensus algorithm, security mechanism, network topology and verification logic for block generation, are relatively consistent and the interaction between them is easy.

Heterogeneous Cross-Chain: The cross-chain interaction of heterogeneous chains is relatively complex and typically requires third-party auxiliary services to support cross-chain interactions.

Before the advent of cross-chain solutions, blockchain networks were limited to their own ecosystems. As more and more industries use blockchain technology, these ecosystems must be able to communicate with one another harmoniously and with maximum efficiency. Cross-chains will likely define the next era of blockchain development and ultimately help preserve the decentralized nature of blockchain technology.