There is a high probability that the future will be a “multi-chain era”, which must contain a lot of opportunities

In the last part, we focused on current asset-based interoperability schemes.

In this post, we’ll introduce the upcoming, true “chain interoperability” at the message and contract level.

The multi-chain/cross-chain era has only just begun.

 01 Light Client Mode – IBC

Speaking of this model, it is naturally represented by the IBC protocol of Cosmos.

In the last article, we introduced IBC, saying that it implements Trustless, that is, it does not need to trust a third-party validator node/bridge, and the native security guarantee is completely provided by the nodes at both ends of the cross-chain.

The original IBC is basically an asset-based cross-chain.

The recently launched Interchain Account is responsible for contract-level interoperability.

For example, a user mortgages and borrows on a borrowing chain like Umee, and then when the liquidation occurs, UMEE will call a Dex such as Osmosis to be responsible for the liquidation and settlement. These are all done through the inter-chain account, and other operations like pledge, voting, etc. can also be accomplish.

Only a few chains will support inter-chain accounts in the first batch. As time goes by, it is believed that more and more Cosmos chains will be connected to this inter-chain account system to realize the exchange of messages and the mutual invocation of business. The ultimate experience should be similar to the composability of a single chain on ETH.

 02 Ultra Light Client + Oracle – LayerZero

LayerZero is a very popular protocol recently, because it is considered to be “another way” when it comes to cross-chain messages.

There is a high probability that the future will be a "multi-chain era", which must contain a lot of opportunities

The method is not too complicated. It is to introduce an oracle like Chainlink into the system and work with him. Every time a message is to be delivered, the message is split into two, and the oracle machine forwards the block header, and the relayer forwards the transaction proof. After the receiver receives it, he can get a complete and error-free message by putting the two halves together. If any one of the parties cheats, causing the two halves to fail to match, the news will be invalid.

There are many advantages, such as the use of ultra-light nodes, unlike IBC, which can only be used in the Cosmos ecosystem, and even theoretically can cooperate with IBC to be the transmission layer of IBC. At the security level, because the oracle machine is introduced, the Relayer node must conspire with the oracle machine node to really threaten the system, so it is also a good design.

Of course, you can’t have both. The introduction of oracles also brings two problems. One is the increased delay in message transmission, and the other is the cost of paying the oracles every time. Chainlink is not cheap to be honest. When a variable comes in, the complexity of the system will increase by one layer, and the complexity will have a more or less impact on the maintenance and upgrade of the system.

 03 Third party chain/network Axelar, Zetachain, Teleport, Multichain (Anycall)…

Like the cross-chain bridge, this model is the most common and the easiest to understand, and it also has the most serious homogenization competition.

In short, it is an upgraded version of the “third-party external validator mode” in the previous article, which has been upgraded from assets to assets + messages.

The model is exactly the same, a separate chain or network is created, and then nodes need to access L1 and L2 across the chain. This chain (network) is only responsible for transmitting messages or assets.

For this model, the marketing strategy may be more important than the technology itself, because the homogenization competition is too serious. There are almost 10 projects that the author knows of, and a new similar project will come out from time to time.

The current leader is undoubtedly Axelar in terms of reputation, and Multichain’s Anycall protocol in terms of progress.

The problem is also the same, you have to trust this third-party chain/network, which is the same as the cross-chain bridge, a natural “defect”.

 04 Pure Oracle – CCIP (Chainlink)

It’s been 10 months since Chainlink announced the cross-chain protocol CCIP, and we still haven’t waited…

It also shows from the side that it is not that simple to make a real cross-chain message protocol.

CCIP is actually a pure third-party network in terms of model, which can theoretically be classified as not particularly commendable.

However, the reason why he is singled out is only because – he is Link:

His market value is big enough!

His node reputation is strong enough!

He is naturally connected to all chains!

He is naturally suitable for cross-chaining!

It is worth mentioning that there is also an Anti-Fraud Network in CCIP (remember the Fraud Proof Bridge mentioned in the previous article), CCIP has a similar effect to this. In addition to the good reputation of its own nodes, the entire cross-chain message transmission also has such a decentralized “anti-fraud/risk control” node group constantly watching, and intervening immediately if there is a problem.

All in all, I am still looking forward to seeing the CCIP launch in the next few months.

 05 The future is still blurry

Some readers may wonder, where is Polkadot?

XCMP is currently under audit, and I believe that Polkadot’s cross-chain protocol will be officially launched soon. After he is on, he will have the opportunity to write a separate article to see which is better than IBC+Interchain Account.

As for the future of inter-chain interoperability, it’s still murky at the moment.

The reason is very simple. At present, the design paradigm of L1 is still extremely diversified, high TPS consensus (such as Solana), sharding (such as Near), Rollup (such as Arbitrum), Sidechain (such as Polygon), Appchain (such as Terra), subnet (such as like Avax)…

Every new public chain underlying technology and every new consensus mechanism will increase the complexity of cross-chain. The different technical solutions of the cross-chain itself also have their own trade-offs, just like the impossible triangle of the public chain, so at present, there is no silver bullet (perfect solution).

But in any case, the official arrival of the multi-chain era has also made cross-chain technology indispensable. The inter-chain interoperability will be the same as the underlying public chain, and there will be constant disputes and iterations in the next few years… There are a lot of opportunities, and it’s time to compete for vision + luck again :)

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/there-is-a-high-probability-that-the-future-will-be-a-multi-chain-era-which-must-contain-a-lot-of-opportunities/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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