Importance of Cross Chain Solutions– A Future Outlook
The blockchain industry since its inception, as far as anyone have come to know, remains on a positively increasing loop–its persistent and relentless road of innovation blazing, without stops or glitches, through the private world of insurance, trade markets, academics and global politics–and, to be frank, there seem to be no end to its ascending beam.
Besides, who could have imagined, in the not-too-distant past, that blockchain would segregate from being a built-in public ledger within the Bitcoin wirehouse to become the mitochondrion of the next-generation technology, as not just a storage protocol, but also as a concrete purveyor of decentralized finances?
“It’s a big-time blockchain world, you know,” a multi-trillion blockchain technologist had tweeted during the 2020 pandemic, rather half-jokingly or not, in his solo attempt to call out the bulk of unmistakable transformations happening at that moment in the world of finance.
And even though, at the time, this blockchain technologist was bullied for focusing on business during a time when billions were almost striving to survive what the pandemic left at their doorsteps, which anyone might agree was enough to spring up unnecessary aspersions and the sort, it was a thumbs-up analysis from a remarkably critical observer. Because everyone would agree, at least, right now, having rummaged through the waltzing trends, that we are in a blockchain world and there’s nothing anyone can do about it.
However, just as all notable platforms before this one, the more users and developers troop into the platform, the more problems arise and consequently needs efficient solutions. The problems of the blockchain technology are quite few and can be summarized into two key catalogues: interoperability and scalability.
In regards to interoperability issues, many blockchain platforms strive in an isolated operational state and are quite unable to communicate and share data with each other. That’s why one cannot exchange Bitcoin with Solano without the interference of third-party souvenirs or middlemen. This limitation abhors the supposed growth of investors who might want to launch in other platforms.
In regards to scalability issues, there’s still a small and limited range of transactions that could be done within a second, thereby repelling users from engagement. But to every loophole, there’s a miraculous amount of things to fill it up; as for these challenges stomping on the blockchain yard, cross-chain bears the ultimate saviour’s call.
How Cross-chain Solutions Like CrossFi Are Trying to Save the Blockchain Technology
Anyone can agree that the aforementioned challenges of interoperability and scalability are interconnected in the same meshwork of technological vulnerability. Each problem is a product of the isolated operational state of most blockchain companies which, in one way or another, affects both communication and data-sharing, and also limits the number of transactions one can perform within a given time.
Cross-chain technology allows users and providers to share data and information between each other, without the involvement of interlopers who charge exorbitant rates for transactions. Not only can there be unlimited transaction pull-ups but also, more than anything else, clients and developers can venture into and launch on multiple platforms without fear of technological incompatibilities.
One project that strives to create a sufficiently advanced cross-chain compatibility is CrossFi. Their aim is to create a cross-chain synthetic asset that would solve the errors faced in certain liquidity sharing projects and, in doing so, create a meeting ground for already existing chains whose operational methodologies are quite isolated. Above all, they are so keen in working towards eliminating numerous technical limitations faced by popular public chains through their significant functionalities in terms of usability and efficiency lacking in most cross-chain assets.
Cross-Chain Liquidity Consensus
CrossFi has made it possible for providers and clients to share liquidity within a cross-chain pool with just a fast click. This means that liquidity pools can be borrowed and shared without strict regulatory procedures.
Cross-Chain Exchange Protocol
CrossFi has gone into a collaboration with Aurora, a subsidiary of NEAR Foundation, one of leading magicians of the blockchain industry. And this collaboration, perhaps, in simpler terms, builds a kind of Rainbow Bridge for assets to be exchanged between both parties with an exchange rate as small as a cent, characterized by layered speedways. And, somehow, they hope to engage with other blockchain-based platforms as well.
This is the absolute truth: the blockchain industry will never reach its zenith until developers tap into the half-tapped reformation weighed upon by cross-chain compatibility. Cancelling out interoperability and scalability issues in the blockchain industry is a collective and tedious effort. CrossFi is already wetting the grounds for new inventories, and every other blockchain-based platform out there should do the same. The future is an open field, waiting to be filled up.
CrossFi is a cross-chain protocol that provides liquidity to you for Filecoin staking and rewards.
CrossFi Official Website: https://crossfimain.com
CrossFi DApp Address: dapp.crossfimain.com
CrossFi Official Twitter Account: https://twitter.com/globalcrossfi
CrossFi Official Discord Group: https://discord.gg/UKGSX3VBY3
CrossFi Official Global Telegram Group: https://t.me/crossfimain_en