Cross-Chain Compatibility: Facilitating Interoperability in GameFi Projects

The ability for GameFi to operate across numerous blockchains is crucial to the success of the concept. Only by providing players with both a seamless and open-ended experience will GameFi reach its true potential. If players are to benefit from DeFi initiatives and have the ability to move their assets across different eco-systems then interoperability across GameFi platforms is essential.

Interoperability refers to the ability of the GameFi platform to interact with as well as transfer data and digital assets between multiple blockchain networks. This cross chain compatibility is important as each blockchain has its own unique features, advantages and limitations. Furthermore, different chains offer different services meaning users often switch between networks depending on what activity they are fulfilling.

For blockchains to achieve cross chain compatibility, there are three main technologies which can be employed -

Cross chain bridges

Software programs that allow users to transfer assets from one chain to another, cross chain bridges work by locking assets on one chain and issuing corresponding tokens on the new. These ‘wrapped’ tokens can then be redeemed at any time for the original asset.

Interoperability protocols

Designated standards which define how various blockchains communicate and transfer assets between each other, interoperability protocols are foundational in building blockchain abstraction layers and allow traditional back ends and dApps to interact with any on-chain environment. Polkadot, Cosmos and icon are some of the most popular on the market today.

Decentralised exchanges

Disposing with the need for intermediaries and market makers, decentralised exchanges allow their users to trade crypto and other digital assets, often without the need for KYC or AML process. Most of the popular decentralised exchanges on the market today, such as PancakeSwap or SushiSwap, support multiple blockchains and therefore can easily facilitate cross chain asset swaps without any problem.

In the early stages of NFT development there was little to choose between Ethereum and Tron. The picture in 2023, however, is much different. Through much lower fees, chains such as BSC, Solana, Harmony, Polygon and Avalanche have all established themselves as being well adapted to the Play to Earn space.

Alongside affordable minting and transaction fees, a decent GameFi blockchain needs to have the capability to process a high rate of transactions in order to cope with the many computation heavy processes the platform must execute.

The benefits of developing a project across a multichain environment are obvious. Interoperability means that developers can leverage the strength of numerous networks allowing the creation of more innovative and scalable projects. Ultimately, multichain based platforms provide the end user with a greater range of applications and services to choose from. In particular, there are two core benefits for developers building projects across multiple chains at once -

• By opening up new chains for eco-systems to enter, developers have the opportunity to reach users from alternative platforms.
• Many networks are already integrated which means the range of services available to developers is greater. This leads to more efficient and provides a seamless range of activities.

Popular games like Splinterlands (Hive, WAX) and Alien Worlds (WAX, BSC) have been developed across multiple blockchains and are evidence of the increased efficiency and importance this flexible approach brings to the space.

Meanwhile, innovative protocols such as the xp.networkbridge are helping grease the interoperability wheels by facilitating quick and hassle free bridging between blockchains. Covering both EVM and non-EVM networks, this multichain NFT bridge is enabling builders to benefit from a world of cross chain opportunity leading to faster load times and cheaper fees.

Interoperability is one of the cornerstones of successful blockchain development and the key to mass adoption. Only through compatible and flexible networks will the dream of an interconnected society become apparent. Luckily for the GameFi space it is now common practice to build a platform using multiple blockchains showing just how far this competitive industry has flourished in recent years.