Interoperability continues to evolve as we have gone from cross-chain to multi-chain to omnichain. We first started out being able to allow different blockchains to communicate with each other, then we began to see protocols being accessible on multiple blockchains. With the help of LayerZero, we are now entering a realm where we can eliminate certain middlemen aka “middle chains” and directly interact with different blockchains as needed.

Imagine the highways and roads we use every day to get to a destination. Without these highways, we wouldn’t be able to get to certain places quickly due to congestion, and some places wouldn’t even be able to be accessed. Interoperability within the blockchain is important to allow networks to interact with one another seamlessly. The integration of different networks creates a clear, unified decentralized network.

A traditional finance example would be a user being able to send funds from one bank to another. If the two banks haven’t established direct communication with each other, it would be impossible to send your funds from Bank A to Bank B. There are fees involved similarly to crypto, but without this accessibility, users wouldn’t be able to move their funds around freely.

Once upon a time, users had to execute a series of transactions to move assets across the chain. Bridges are used in the process of moving assets from Chain A to Chain B. First, they have to find the appropriate bridge because some bridges don’t have availability for certain assets and blockchains. Then, if the asset needed for the bridge isn’t already in the user’s wallet, the user would have to swap for the required asset to bridge it to the desired chain, and then swap for the asset of their liking after the bridging is complete. Executing these transactions incur fees that eventually add up.

Multichain technology creates an internet of blockchains capable of communicating with each other, while cross-chain technology uses smart contracts to create synthetic versions of the coins that can interact with other blockchains directly.

The creation of omnichain allows users to be able to directly utilize assets and blockchains on separate blockchains in a unified way without the need for a bridge. This way of connecting chains seamlessly brings in a new approach to interoperability. However, there’s more to it than just bridges. This opens the lane for omnichain lending and borrowing, swapping, NFTs, governance, and more.

The common bridges we know today use a single pool connected to an individual chain to attract liquidity for an asset. Current LP providers on the single chain would receive rewards for contributing to the pool. The Unified Liquidity Bridge idea sparked a new way to increase the liquidity and rewards being distributed. This mechanism essentially creates a pool that provides liquidity for an asset connected to all chains that it is available on. This ensures that the liquidity providers receive fees specific to that pool rather than the individual chain on normal bridges.

How Does This Solve Anything?

Blockchain bridges are very susceptible to hacks and exploits. Recently, major bridges have been exploited like Wormhole, Nomad, Harmony’s Horizon Bridge, and others. When trusting a bridge to transport liquidity we have to rely on various parties to get the job done. Having a unified hub where the process can be streamlined could potentially be effective in eliminating the risk of these current bridge systems.

In an omnichain environment, users would be able to swap a native token like ETH on the Ethereum network to an asset like SOL on Solana. Platforms like Stargate are currently building this out and are helping usher in this new wave.

Stargate's vision is to make cross-chain liquidity transfer a seamless, single transaction process.

Stargate intends to solve the bridging trilemma by guaranteeing instant transaction finality, executing native asset swaps instead of wrapped asset swaps, and unifying liquidity which can make more assets available for users and protocols across multiple chains. This will also increase fee incentives.

They plan to do this by implementing what they call “omnichain finance” by allowing applications to build on top of their protocol. For example, a DEX like Uniswap could utilize Stargate to complete single transaction cross-chain swaps within their interface. Another example would be a yield aggregator like Yearn Finance being able to use Stargate to deploy assets cross-chain, opening up new yield opportunities.

This allows them to be a trusted source and the go-to platform for those types of utilities.

Lending and Borrowing has always been popular theme in the DeFi space. Radiant Capital has built the first omnichain money market that allows users to lend on one chain and borrow on another. Money markets have always been a critical aspect of DeFi and having a platform like this allows liquidity to flow to multiple blockchains where everyone can benefit.

With their current launch on Arbitrum network and the recent announcement of expansion to BNB Chain, we will see tons of liquidity rushing in to utilize their services and more fees being paid out as result.

Radiant aims to provide more value to its investors by upgrading its tokenomics, continuing to expand to more chains, and implementing governance features for its native token holders.

OmniBTC was the first application built for omnichain swapping. Their goal is to provide users with the smoothest experience of swapping in a decentralized environment. They enable users to swap assets with one click. They are also integrating Stargate’s current foundation.

Although OmniBTC and Stargate are similar, they provide individually unique aspects to omnichain finance as a whole. OmniBTC is considered an application built upon omnichain finance while Stargate is acting as the sole foundation.

OmniX is an NFT protocol that offers a marketplace, and tooling for creating omnichain collections and cross-NFT sales. This can potentially be used across on-chain games as well.

They aim to connect creators, communities, and enthusiasts alike to unlock their full potential by interacting with this omnichain ecosystem of NFTs and innovative tooling.

The fast-paced innovation of interoperability fails to disappoint as new technologies are built and narratives grow. This omnichain future has a bright light being shed on it as they help solve former problems within the DeFi space in effective ways. It will be interesting to see what protocols and applications are built upon the omnichain as it continues to develop. We went from cross-chain to omnichain in a matter of time, and hopefully, we will be able to participate in seeing its growth at full-scale.

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Interoperability continues to evolve as we have gone from cross-chain to multi-chain to omnichain. We first started out being able to allow different blockchains to communicate with each other, then we began to see protocols being accessible on multiple blockchains. With the help of LayerZero, we are now entering a realm where we can eliminate certain middlemen aka “middle chains” and directly interact with different blockchains as needed.

Imagine the highways and roads we use every day to get to a destination. Without these highways, we wouldn’t be able to get to certain places quickly due to congestion, and some places wouldn’t even be able to be accessed. Interoperability within the blockchain is important to allow networks to interact with one another seamlessly. The integration of different networks creates a clear, unified decentralized network.

A traditional finance example would be a user being able to send funds from one bank to another. If the two banks haven’t established direct communication with each other, it would be impossible to send your funds from Bank A to Bank B. There are fees involved similarly to crypto, but without this accessibility, users wouldn’t be able to move their funds around freely.

Once upon a time, users had to execute a series of transactions to move assets across the chain. Bridges are used in the process of moving assets from Chain A to Chain B. First, they have to find the appropriate bridge because some bridges don’t have availability for certain assets and blockchains. Then, if the asset needed for the bridge isn’t already in the user’s wallet, the user would have to swap for the required asset to bridge it to the desired chain, and then swap for the asset of their liking after the bridging is complete. Executing these transactions incur fees that eventually add up.

Multichain technology creates an internet of blockchains capable of communicating with each other, while cross-chain technology uses smart contracts to create synthetic versions of the coins that can interact with other blockchains directly.

The creation of omnichain allows users to be able to directly utilize assets and blockchains on separate blockchains in a unified way without the need for a bridge. This way of connecting chains seamlessly brings in a new approach to interoperability. However, there’s more to it than just bridges. This opens the lane for omnichain lending and borrowing, swapping, NFTs, governance, and more.

The common bridges we know today use a single pool connected to an individual chain to attract liquidity for an asset. Current LP providers on the single chain would receive rewards for contributing to the pool. The Unified Liquidity Bridge idea sparked a new way to increase the liquidity and rewards being distributed. This mechanism essentially creates a pool that provides liquidity for an asset connected to all chains that it is available on. This ensures that the liquidity providers receive fees specific to that pool rather than the individual chain on normal bridges.

How Does This Solve Anything?

Blockchain bridges are very susceptible to hacks and exploits. Recently, major bridges have been exploited like Wormhole, Nomad, Harmony’s Horizon Bridge, and others. When trusting a bridge to transport liquidity we have to rely on various parties to get the job done. Having a unified hub where the process can be streamlined could potentially be effective in eliminating the risk of these current bridge systems.

In an omnichain environment, users would be able to swap a native token like ETH on the Ethereum network to an asset like SOL on Solana. Platforms like Stargate are currently building this out and are helping usher in this new wave.

Stargate's vision is to make cross-chain liquidity transfer a seamless, single transaction process.

Stargate intends to solve the bridging trilemma by guaranteeing instant transaction finality, executing native asset swaps instead of wrapped asset swaps, and unifying liquidity which can make more assets available for users and protocols across multiple chains. This will also increase fee incentives.

They plan to do this by implementing what they call “omnichain finance” by allowing applications to build on top of their protocol. For example, a DEX like Uniswap could utilize Stargate to complete single transaction cross-chain swaps within their interface. Another example would be a yield aggregator like Yearn Finance being able to use Stargate to deploy assets cross-chain, opening up new yield opportunities.

This allows them to be a trusted source and the go-to platform for those types of utilities.

Lending and Borrowing has always been popular theme in the DeFi space. Radiant Capital has built the first omnichain money market that allows users to lend on one chain and borrow on another. Money markets have always been a critical aspect of DeFi and having a platform like this allows liquidity to flow to multiple blockchains where everyone can benefit.

With their current launch on Arbitrum network and the recent announcement of expansion to BNB Chain, we will see tons of liquidity rushing in to utilize their services and more fees being paid out as result.

Radiant aims to provide more value to its investors by upgrading its tokenomics, continuing to expand to more chains, and implementing governance features for its native token holders.

OmniBTC was the first application built for omnichain swapping. Their goal is to provide users with the smoothest experience of swapping in a decentralized environment. They enable users to swap assets with one click. They are also integrating Stargate’s current foundation.

Although OmniBTC and Stargate are similar, they provide individually unique aspects to omnichain finance as a whole. OmniBTC is considered an application built upon omnichain finance while Stargate is acting as the sole foundation.

OmniX is an NFT protocol that offers a marketplace, and tooling for creating omnichain collections and cross-NFT sales. This can potentially be used across on-chain games as well.

They aim to connect creators, communities, and enthusiasts alike to unlock their full potential by interacting with this omnichain ecosystem of NFTs and innovative tooling.

The fast-paced innovation of interoperability fails to disappoint as new technologies are built and narratives grow. This omnichain future has a bright light being shed on it as they help solve former problems within the DeFi space in effective ways. It will be interesting to see what protocols and applications are built upon the omnichain as it continues to develop. We went from cross-chain to omnichain in a matter of time, and hopefully, we will be able to participate in seeing its growth at full-scale.

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