Bridging the Inoperability Divide: Connecting Different Blockchains
Blockchain technology has been hailed as a world-changing innovation, but does it have any use beyond creating speculative financial instruments? – Copyright AFP/file Petras Malukas
To increase security and reduce transaction costs, a number of businesses are using smart contract technology. Smart contracts are digitized versions of paper contracts, with the mart element referring to a code written into a blockchain that executes the terms of a contract from off-chain. The process automates the actions that would otherwise be carried out by the parties to the agreement, and this removes the need (and associated concerns) for both parties to trust each other.
When developing contracts and other blockchain applications, developers have typically faced a choice between adopting an EVM-compliant network or a non-EVM-compliant network. The Ethereum Virtual Machine (or EVM) is a piece of software that executes smart contracts and calculates the state of the Ethereum network after each new block is added to the chain. In many business areas, it has become the platform for the distribution and execution of smart contracts.
Examples of EVMs include Polygon, Binance Smart Chain (BSC) and (of course) Ethereum; while non-EVM chains include Solana, Polkadot and Cosmos.
The alternative is a non-EVM chain, which offers different options and often greater flexibility. However, non-EVM-compliant chains have disadvantages such as high developer costs, high barriers to entry and difficult project migration.
A new development means that the binary choice between EVM and non-EVM no longer needs to be made, offering a more flexible approach for business. The innovation comes from Layer One X.
Layer One X, the interoperable blockchain, has recently achieved a significant breakthrough in blockchain technology. On March 3, 2023, Layer One X made history by becoming the first layer one blockchain to achieve a decentralized transfer of assets between an EVM chain and a non-EVM chain. This achievement marks an important milestone in the blockchain industry.
Before this innovation, there was an irony attached to the supposed benefits of blockchains and the flexibility that comes with them: A blockchain cannot send data or tokens to another blockchain.
This problem has become more apparent as the number of blockchains has grown, and it causes problems for businesses because the transaction cost benefits cannot be realized if different firms use different blockchain technologies.
The Layer One X trial (or “testnet”) transferred assets between an EVM and a non-EVM network without the use of bridges. This is the first time this process has been carried out in a fully decentralized atmosphere, and it may hold the key to connecting the fragmented array of blockchains and again presenting the promise of reduced business costs.
The aim is for the Layer One X test network to be fully launched when the main network is unveiled in August 2023.
