Challenges And Solutions In Blockchain Interoperability

According to Cointelegraph, Anurag Arjun, co-founder of Avail and the Polygon layer-2 scaling solution, highlighted the challenges posed by current chain abstraction techniques in the crypto ecosystem. Arjun pointed out that each blockchain base layer operates with its own security assumptions, complicating interoperability. He noted that these layers have distinct validators and crypto-economic security, necessitating the creation of infrastructure like bidirectional light clients, which he identified as a significant bottleneck. Bridging between chains involves a complex, multi-step communication process that incurs high costs and security risks, further fragmenting users and capital. Arjun emphasized that previous efforts to achieve interoperability primarily focused on bridging liquidity between blockchain networks, allowing users to transfer liquidity across chains. However, this approach has led to increased fragmentation and cybersecurity vulnerabilities, resulting in several high-profile hacks, including the Wormhole Bridge hack on February 2, 2022, which resulted in a $321 million loss. Chain abstraction aims to simplify user experiences and interfaces by concealing technical blockchain aspects from end users. The ultimate goal is to provide a seamless and unified blockchain experience, enabling users to interact across chains through a single interface. An example of this is the NEAR Protocol's Chain Signatures feature, which allows users to sign transactions across multiple blockchain networks from their NEAR accounts using a single wallet. This solution has been praised for its simplicity and is considered a potential future base layer for blockchain interactions.