There is much recent advancement made in the technology and science field. Every arduous task of humans is becoming computerized to reduce the risk and error. Nowadays, even the usage of currencies has become digitalized and people started using crypto-currencies instead of normal currencies. There are many sources of data present and the only risk is proper storage and security for its access. They develop the blockchain to collect and store information and it is a kind of digital ledger useful for avoiding the risk of threats and cheating in the process of transaction and funding. The cross chain support is one technique used for the interoperability of blockchain. In simple words, it is the procedure of making two different blockchains to communicate with each other, through uniform construction.
Importance Of Cross Chain
- Distributed ledger and blockchain technologies are becoming increasingly popular and significant in people’s daily lives. However, connecting various chains is a significant problem for businesses, thus they choose to use the blockchain interoperability technique. This cross-chain system is quickly becoming a hot topic in the interoperability debate.
- Cross-chain technology is the activity of transferring knowledge and value across various networks of distinct blockchains. It is an isolation technique useful for preventing every individual from reaping the whole benefits of distributed ledger technology. Because of the difficulty of blockchain interaction, people cannot enjoy the whole advantage of blockchain technology. So, people use this cross-chain method to address the problem of interaction and provide the best reliable solution for it.
- It solves the problem by providing interoperability between the blockchains and makes them communicate and exchange information with one another easily and effectively. This support system can make two independent or different blockchains to communicate or share information. It also overcomes the single-chain constraints.
- The cross-chain system is differentiated into categories known as heterogenous or isomorphic based on the underlying technology. The isomorphic method uses the technology of consensus process, network architecture, the logic of verifying the block creation, security method and also makes inter-chain communication easier and comfortable.
- It does not require any intermediaries for the interoperability of blockchain and also can be applied in business networks. Rather than the usage of networks in business, it is also useful for the process of transactions with customers. The overall procedure occurs in real-time without the downtime and high transaction fees.
- This technique makes two trustless parties exchange their coins or currencies in a fully safe and authorized way using the leverage system of hash time-lock contract (HTLC). It is one of the smart technologies used in this system to bind or combine two trustless parties for the token exchange process with no central authority or third party. This is useful for the easy swapping of currencies or coins through the wider network.
- The cross chain support is useful for reducing fragmentation, improves chain efficiency, and also makes the features and users flow freely across multiple chains with no risk. It gives moral support for the trading network to exchange different types of cryptocurrencies with no inconvenience or risk in a safe and secured way.