The Future Is Cross-Chain

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Team DeHive
Aug 2nd 2021
The Future Is Cross-Chain

Probably, the easiest way would be to ask your friend to get a wallet that accepts ETH as well. Or if they get a bit stubborn, sell ETH, buy BTC, send it, and finally do the job on your own.

But it would probably take ages and some fees to complete all transactions. And overall, it sounds kinda too complicated, don’t you think?

If you know anything about the crypto world, you can understand the frustration. And the reason for that is the lack of blockchain interoperability.

What is it, and why does it matter? Let’s find out.

What is blockchain interoperability?

Blockchain interoperability is the ability of two different blockchains to transfer information and value from one to the other. Simply put, it’s the ability of two networks to work together safely and trustlessly.

Currently, this is one of the major challenges of the blockchain society, which upsets even Vitalik Buterin.

Vitalik Buterin Official Twitter account

Why is it so hard to reach blockchain interoperability? The reason for that is the essence of blockchain itself.

Blockchains were initially created as self-sufficient distributed ledgers that reject any central authority or middlemen. Though this allowed us to benefit from decentralization, it also introduced certain limitations that prevent cross-chain compatibility.

Why do we need this in the first place, you might think? There are several reasons for that.

Why do we need cross-chain technology?

Cross-chain communication will benefit all parties of the blockchain ecosystem. It will help many existing DeFi instruments and cryptocurrencies find new users and scale off-chain. This will eventually lead to accelerated industry development and wider blockchain adoption.

But the thing is that mass adoption of blockchain technology and decentralized finance will only be possible if they become as easy to use as our legacy solutions.

Just think about it, nowadays, you don’t have to do much to send funds from the US to another country, say Italy or Japan. Even though there are no universal banks that would cover all countries worldwide, there are plenty of tools enabling cross-bank transfers. So all you need to do is go online and find the one that fits you best.

Yet, when it comes to different blockchains and not countries or banks, you’d have to go through hell to complete the transfer. Or at least, you did before the emergence of the first cross-chain solutions.

How does cross-chain work?

There are several main features of a solid cross-chain solution.

  1. Atomicity. The effects of a cross-chain interaction must influence both blockchains simultaneously or none at all.
  2. Consistency. All interconnected blockchains must have a common history, which will allow secure future transactions.
  3. Decentralized nature. This one goes without saying — any cross-chain solution has to follow the main rule of blockchain being decentralized and trustless.

To connect different blockchains, the community came up with a perfect cross-chain solution — blockchain bridges.

Source: Blockchain Interoperability: Building New Bridges

A blockchain bridge is a connection between two or more blockchains that enables their interoperability. It helps users transfer any data between the blockchains regardless of their nature.

Trustless bridges allow users to make the most of all blockchains and stay safe. For instance, users can conduct fast transactions at a low cost, deploy assets from one blockchain to dApps on another, or run dApps across multiple platforms.

Overall, blockchain bridges enable almost unlimited possibilities across different networks and continue gaining momentum. We believe they are the first baby steps of the blockchain society towards seamless interoperability.

DeHive — the first multichain portfolio amplifier!

One of the prominent use cases of cross-chain technology is DeHive, the first multichain portfolio amplifier that unites the most efficient instruments of crypto trading under a powerful financial tool — crypto cluster.

DeHive clusters allow users to create a portfolio within different ecosystems and keep it well-balanced automatically. Besides, the cluster lock mechanism helps generate more profit by yield farming and strengthens the portfolio in this way.

Recently, DeHive has partnered with AnySwap, a decentralized swap protocol supporting bridges to multiple blockchains. This means that DeHive will have the possibility to operate on various blockchains, including Binance Smart Chain, Ethereum, Avalanche, xDAI, Fantom, Polygon, and others. This will also enable DHV and DeHive Cluster tokens transfers across multiple blockchains supported by AnySwap.

This is definitely not the last DeHive partnership and not the final step on our way to multi-chain operation. But we are proud to say that we’ve already got this far. So join us during this journey and become a part of the Hive!

About DeHive🐝

DeHive is a multi-chain crypto hive full of the top DeFi tokens.DeHive provides an economically sound index of assets with additional yield from DeFi protocols.

The assets are combined and represented by an index or different indexes reflecting the state of different market segments. This index comprises leading DeFi assets that serve as a benchmark for the economic health of the crypto market in general. Therefore, such an index can be perceived as a tool for market assessment and reasonable DeFi portfolio management.


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