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0 CommentsBlockchain interoperability is essential for the industry, but current solutions such as bridges are quite vulnerable. So what is the solution?
Blockchain interoperability is one of the most important goals to ensure that the industry becomes future-proofed. Smooth cross-chain communication and flow of value are essential for efficient transactions and use cases. By addressing the fragmentation of Layer-1 networks, the blockchain industry can improve user experience, open new opportunities for collaboration, overcome its speed and scalability limitations, and accelerate the adoption of the technology across all major industries.
The problem of cross-chain solutions
While blockchain market participants realized the importance of interoperability long ago, we still don’t have decentralized systems that can work together smoothly, securely, and on a large scale. Today, cross-chain communication relies on go-between platforms such as bridges.
The problem is that bridges have turned out to be the weakest security point across the whole blockchain space. The latest report from Chainalysis shows that 2022 was the worst year for cryptocurrency hacks, and cross-chain bridges accounted for about two-thirds of all crypto stolen, or about $3.1 billion worth of assets. The report noted: “A more desirable honeypot could scarcely be imagined. If a bridge gets big enough, any error in its underlying smart contract code or other potential weak spot is almost sure to eventually be found and exploited by bad actors.”
Achieving interoperability without compromising security
Cross-chain communication is too important to be disregarded simply because of security risks. Thankfully, some solutions enable blockchain interoperability while eliminating intermediary players like bridges. One of the best examples is Layer One X (L1X), a decentralized Layer-1 network that achieves unmatched interoperability and scalability without compromising security.
L1X eliminates centralized players and the need to trust a central point of failure, such as a bridge. This makes cross-chain communication faster, safer and less expensive.
The goal of L1X is to unite all blockchains and unleash their full potential, providing decentralized multichain interoperability that is accessible to all users. Its proprietary virtual machine (L1X VM) is compatible with the Ethereum Virtual Machine (EVM) Smart Contracts, which enables it to connect chains that account for over 80% of the total value locked (TVL) on decentralized finance (DeFi) protocols. These include EVM and non-EVM compatible chains like Ethereum, Solana, Binance, Polygon, Avalanche, Arbitrum and Optimism. L1X will further expand its network by unlocking access to additional chains to make Web3 more accessible and less fragmented.
L1X focuses on a proprietary generic messaging and protocol standard for cross-blockchain event triggering for multiple assets and functionalities. For example, users can lock an NFT on one blockchain and borrow on another while using the L1X VM.
The L1X VM also allows direct development on its VM for scalability and security, with plans to make it Turing complete.
While previous decentralized networks scratched their heads over solving the blockchain trilemma, L1X focuses on what it calls the “Blockchain Quartet” by achieving all four critical elements of a decentralized network without compromise: interoperability, decentralization, scalability and security.
L1X partnered with Prysm Group for tokenomics and is designed with scalability and speed in mind. The network is working to achieve 100,000 transactions per second with almost instant block creation. The blockchain not only achieves interoperability but aims to put the world’s 8 billion smart devices to work for micro-validation. L1X integrates a unique hybrid consensus mechanism that enables fast confirmation and higher throughput. L1X combines proof-of-stake with chipset-equipped devices as democratic validators to ensure decentralisation and ensure full node accountability.
Enabling chains to connect via decentralized interoperability, L1X aims to collaborate rather than compete with other blockchains. In this way, the crypto market becomes less fragmented while all blockchains and DApps are able to scale and realize their full potential. What’s more, Layer One X is holding a private sale round with the aim of providing equal investment opportunities to all investors.
L1X’s vision is to put Web3 users first, and then allow protocols to be built around their needs. This way, Web3 users can take advantage of all the protocols on L1X easily through a single wallet including the ability to store health records, assets and more on-chain.
Blockchain interoperability as a catalyst for mass adoption
By achieving blockchain interoperability, the technology can accelerate mass adoption across all industries.
Due to Layer-1 networks operating independently from each other, it’s difficult for private users and companies to leverage the features offered by each network. When a higher degree of interoperability is achieved, users won’t have to operate multiple wallets and cryptocurrencies to engage with each separate network.
The interest in integrating blockchain solutions is at an all-time high, and interoperability is critical to ensuring mass adoption.
