1inch network cross-chain innovation white paper release
1inch Network has released a new white paper to address the pressing challenges of cross-chain communication in the cryptocurrency space.
As part of the solution, the decentralized financial platform is developing the 1″ Fusion Atomic Swap protocol, which combines the security of traditional atomic swaps with the simplicity of a concept-based approach.
According to Anton Bukov, co-founder of 1inch, the biggest benefit of the Swap protocol is the frictionless user experience that blends with technology.
Bukov told Cointelegraph:
“These technologies are built around three key principles: being completely trustless, providing protocol efficiency without central authorities, and using Dutch auctions along with challenger competition to ensure optimal performance.”
1inch Fusion Atomic Swap Protocol Announcement. Source: 1 inch
The new swap protocol enables seamless on-chain exchanges, whether the tokens are on Layer-1 (L1) or Layer-2 (L2) blockchain networks, effectively “eliminating network boundaries”.
“Looking forward, finders will leverage their services through other centralized bridges, creating cross-chain liquidity that will further enhance the DeFi ecosystem.”
The white paper comes amid growing demand for cross-chain solutions. In early August, Ethereum founder Vitalik Buterin announced plans to address cross-chain interoperability between Ethereum L2s.
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Cross-chain scalability is the biggest challenge in blockchain.
Blockchain interoperability is one of the industry's biggest concerns.
Since L1 blockchains are siled systems, they have no way to communicate with each other, which is why there are cross-chain interoperability solutions.
The lack of compatibility between blockchains makes cross-chain infrastructure difficult, leading to the vulnerability of these third-party protocols.
1inc Network is the largest decentralized exchange (DEX) aggregator on Ethereum, with more than $4 million in total value locked (TVL) and more than $189 million in total funds raised, according to Defillama data.
1 inch network, total value locked. Source: Defillama
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Cross solutions are risky: Vitalik Buterin
The white paper comes two years after Ethereum founder Vitalik Buterin first raised the alarm over the chain's bridges over centralization threats.
In a Reddit post from January 2022, Buterin shared his concern about how 51% attacks on cross-chain bridges will spread in the future.
“The problem gets worse when cross-chain bridges and applications are widely used. No one is going to attack 51% of Ethereum to steal 100 Solana-WETH… but if there is 10 million ETH or SOL in the bridge, the motivation to attack is very high and the large pools to do it.” They may well be attacked.”
Others envision a bridgeless future for the blockchain space. For example, Polygon is building interoperability through AggLayer, which is short for Aggregation Layer and is similar to the cross-chain protocol used to connect blockchain networks.
Ultimately, AggLayer aims to connect the entire blockchain space, including Layer-1 networks like Ethereum and Solana, said Polygon Labs CEO Marc Boiron.
Cointelegraph Interview with Marc Boiron Polygon Labs – Clip 1 Polygon 2 0. Source: YouTube
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