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Blockchain experts are working hard to solve the issue of interoperability that makes connecting blockchains complex, expensive, inefficient, and sometimes impossible. Currently, there are several solutions available that can be broadly divided into two categories: cross-chain and multi-chain. Each of the solutions has its advantages and disadvantages, and many ecosystems are implementing them and working to improve them according to their specific needs.
One of the more recent and innovative solutions is InterChain, a blockchain framework that enables secure and scalable interoperability between any pair of blockchains. It can offer users and developers a seamless experience with better scalability, flexibility, and interoperability by connecting multiple chains and utilizing their strengths.
So, what sets InterChain apart from other solutions?
Cross-chain is a technology that connects two blockchains, providing the level of interoperability necessary for an efficient and seamless operation between them. Its main goal is to compensate for the isolated nature of blockchains and create a cohesive network, enabling users to switch between the blockchains effortlessly.
Multi-chains (as the name implies) consist of multiple independent chains created on top of the shared foundation and interconnected through the hub(s) that coordinate security and assist asset transfers. This technology requires projects to simultaneously exist on at least two blockchains (for example, Ethereum and BNB Smart Chain). Thus, it is easier to establish communication between multiple networks and increase decentralization.
InterChain distinguishes itself from multi-chain by enabling the connection of numerous blockchains without replicating applications. The InterChain ecosystem consists of sub-chains or sub-blockchains and employs two types of nodes, gateway nodes and validating nodes, to facilitate blockchain connectivity and transaction validation. Gateway nodes relay transactions and proofs from sub-chains to InterChain while validating nodes participate in InterChain's consensus, verify cross-chain transactions from sub-chains, and gather their block headers. Thus, InterChain allows for seamless interaction between multiple chains. Learn more on how InterChain works below.
Cosmos is the leading project when talking about InterChain use. The decentralized Cosmos Network comprises independent, scalable, and interoperable blockchains, and it has the potential to form the basis for a more efficient and user-friendly crypto economy. It connects various apps and services by using the Inter-Blockchain Communication protocol (IBC), which allows for seamless exchange of assets and data across otherwise totally independent decentralized blockchains.
Inter-platform communication is usually made possible through smart contracts, which lock tokens on one blockchain (for example, Bitcoin) and mint the corresponding amount on another blockchain (for example, Ethereum), thus creating wrapped tokens. This process does not involve sending tokens from one blockchain to another; real tokens are frozen, and new corresponding ones are created on the desired blockchain instead.
However, Cosmos takes a different approach. It connects blockchains using the first Cosmos-based blockchain, known as Cosmos Hub, which acts as the center of the entire ecosystem, keeping a record of its state. But how does this work exactly?
Blockchain developers create decentralized and sovereign applications called zones that are interconnected through hubs. Although every zone or hub may not necessarily work with each other, they need to be linked to Cosmos Hub. At the same time, all zones are able to function independently as separate entities. They can evolve, make changes, create new tokens, authenticate accounts, and more. It is worth noting that Cosmos Hub can also facilitate the interoperability of existing proof-of-work blockchains, such as Bitcoin, by utilizing bridges.
Lastly, Cosmos addresses two critical issues in blockchain technology – scalability and usability. It provides a developer-friendly SDK that enables developers to fully customize their decentralized applications and connect them to the ever-expanding ecosystem while simultaneously ensuring their autonomy and security.
The crypto community's ultimate goal is to establish an Internet of blockchains, an ecosystem that facilitates decentralized, secure, and unrestricted communication between various chains. Cross-chain bridges are currently one of the most popular solutions that offer fast transaction times and relatively low costs. However, they are susceptible to security risks and are not very effective during multi-part cross-chain exchanges. Multi-chain technology is more secure but also more complicated and time-consuming. By allowing blockchains to interact with each other while maintaining their independence, InterChain has the potential to revolutionize the crypto industry, making DeFi more user-friendly and efficient.
The Kinetex team has years of experience in the blockchain industry, specializing in cross-chain solutions that enhance the efficiency and user-friendliness of DeFi. The Kinetex dApp aggregates more than 200 liquidity sources in one place, allowing users to swap over 5,000 assets effortlessly.
Kinetex Network: Website | Kinetex dApp
