Blockchain is often touted as a revolutionary technology that will change the way we do business. Yet most chains are siloed with specific use cases and varying degrees of decentralization.
With the increase in web3 solutions, the need to interconnect different chains to enable cross-chain interoperability is increasing every day.
This article elaborates on the concept of cross-chain interoperability and how Konstellation is leveraging interoperability to offer a workable solution to this problem in the DeFi capital markets.
What Is Cross-Chain Interoperability And Why Is It Important?
New blockchain protocols, with unique approaches, novel consensus protocols, and advanced capabilities to host applications are launched with each passing day. Almost every industry is evolving to accommodate different versions of DLT solutions.
But there are several issues to solve. Among them are slow processing speeds, poor scalability, and lack of complete decentralization. Currently, it is very cumbersome for users to use their cryptocurrencies within different DeFi ecosystems without involving a centralized intermediary. Thus, defeating the very purpose of the technology – peer-to-peer value exchange. But there may be a solution to this.
Cross-chain interoperability permits blockchains to communicate with one another, bestowing them with the capability to exchange data and value across each other. Thereby enabling different chains to trade each other’s efficiencies, decentralization, features, and security protocols.
By facilitating communication and data transfer among chains, interoperability seeks to address the limitations of a single siloed blockchain. Users would be able to send data and value to any blockchain or decentralized application (dApp) of their choice, without having to go through a centralized entity.
Further, new developments like interchain security are only going to complement interoperability and provide the much-needed trust to users while participating in different ecosystems.
How Does Konstellation Incorporate Cross-Chain Interoperability?
Konstellation Network is a layer-1 blockchain. It is built on the Cosmos ecosystem that enables the creation of custom, secure, scalable, and interoperable blockchains through Inter-Blockchain Communication (IBC) protocol.
The layer-1 solution is also connected to Solana and Binance Smart Chain, with more integrations coming soon.
The project aims at developing several dApps across DeFi, CeFi, NFT, and DAO domains with the help of the IBC relayer, an off-chain process that relays messages between any two chains.
Powered by DARC, the project aspires to create a global infrastructure for the future of decentralized capital markets. One where global investors can universally access innovative and profitable products at low costs and high speeds.
It offers cross-chain capital markets solutions, highly composable and interoperable DeFi, and optimal connectivity between capital and returns. With this, the network is set to seamlessly bridge capital and returns and remove the inefficiencies of TradFi.
Future Of Cross-Chain Interoperability
With the growth of the DeFi ecosystem and an increasing number of projects being launched on different blockchains, it is only a matter of time before interoperability becomes the norm.
The Cosmos SDK, used by Konstellation, is already used by more than 250 other projects. The IBC protocol is also gaining popularity with other major players in the space like Polkadot, Ethereum, and Tron working on their versions of interoperability solutions.
In the coming years, we are likely to see an increase in the number of projects implementing cross-chain solutions and a growing acceptance of interoperability as a means to achieve true decentralization.
Konstellation is at the forefront of this change, working towards a future where different blockchains can seamlessly communicate with each other and exchange value without any central intermediary.
So, what does the future hold for blockchain? An increasing number of crossovers between chains, dApps, and users – all striving to achieve the same goal: A decentralized future.
✨KONSTELLATION Network is a blockchain protocol, built on Cosmos Network SDK, creating a global infrastructure for the future of the decentralized capital markets.
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Source : cryptodaily