When blockchains first emerged, cross-chain solutions weren’t part of the equation. The idea was that everything could be performed on an autonomous, single chain.

With scalability limits and innovation constraints, more institutions now understand that blockchains cannot exist solely by themselves.

Cross-chains help prevent the limitations that come with single chains. As blockchain technology evolves and matures, cross-chain compatibility is a crucial component to the future of decentralised finance.

Decentralisation Fuels Innovation

It’s no secret that cryptocurrency is becoming more widely adopted, and as more users buckle up for the ride, decentralisation is the fuel driving this financial vehicle.

Whether it’s corporate power, cyber security, or even the advancement of supply chains, decentralisation is propelling innovation.

Decentralisation as a distinct characteristic of technology is also manifesting directly in the way this technology is being developed and the community around it. This goes against the grain of current geographically constrained tech-hubs, where project funding is provided by large centralized fiat issuing institutions.

Think of Silicon Valley, where it’s easy to get money to innovate due to pre-existing largely centralised funding structures. In contrast, blockchain technology is a parallel ecosystem where accessibility is more prevalent, and developers all over the world can contribute to the rapid growth of novel blockchain protocols and applications.

The power of decentralisation comes from retail investors, where geographical location is less important. It represents the idea that someone from anywhere in the world can receive funding for an innovative project or idea, which enhances the development of new technology.

Scattered Solution Space

A result of this process is more organic growth and evolution of the technology.

However, as innovation is stimulated by distributed, independent sources of funding, the feature-rich and rapidly growing solution space that emerges is primarily scattered across separate isolated projects.

This makes it challenging to take advantage of the full potential of the technology as some applications are impossible to implement on single chains. It also constrains innovation since useful solutions to specific problems might not achieve enough exposure for sustained operation on their own.

Unified access to previously isolated separate solutions would increase the total solution space for decentralised applications and drive further incentives for innovation at both the application layer and the Layer 1 protocol level.

Unifying Interoperability

Most blockchains exist in isolation, finding difficulties in communicating with one another. So far, this has stifled the growth of the crypto industry.

If a sufficient level of interoperability between separate blockchains could be achieved, it would remedy this problem. With a unifying level of interoperability, the scattered solution space provided by solitary blockchain solutions could be accessed as if they were one.

The missing piece of the puzzle is the unifying level of interoperability within Coinweb’s unique three-layer system, which allows for distribution across multiple layers.

Unifying interoperability in the availability and consensus layer allows information, properties and functionality from the underlying chains to be combined without adding new consensus mechanisms between each chain. As a result, information across chains is more adaptable and accessible.

The computational layer’s deterministic nature enhances its unifying level of interoperability, increasing the blockchain’s usability. This includes the implementation of reactive smart contracts, which allows DApps to span a fully blockchain interoperable lifecycle.

DApps that implement interoperability should maintain the trustless properties without compromising its decentralized status. This is why Coinweb’s application layer maintains the trust and security properties from its other layers.

Coinweb offers a unique approach when it comes to interoperability, operating within the consensus of each underlying chain. The increased composability given by interoperability makes it possible to solve more complex problems and increase solution space and security for decentralised applications.

Adaptability — Continuous Innovation

Blockchain technology has grown significantly, and an exponential growth can be expected over the next few years. As more projects are utilizing multiple blockchains, the potential for more scalability increases.

A project’s ability to adapt as new innovations come into the field will determine its longevity. Without adaptability, it will be difficult to adjust to new innovations as they happen. This places risk on projects being outperformed by competitors that use newer and improved blockchains.

For Coinweb, adaptability is one of the main catalysts for mainstream adoption and the everyday use of blockchain technology. Without adaptation, there is little room for increased innovation.

The world of technology is constantly changing, and an applications’ ability to continuously adopt new innovations as they become available will become a necessity for success in the crypto space.

Conclusion

In the future, the core principles of decentralisation will become crucial for large-scale projects building on Coinweb. At the same time they will be able implement new innovations as they come into the field.

While cross-chain developmental efforts are still in their early stages, Coinweb’s unifying interoperability allows DApp projects to utilize the properties, functionalities and information of multiple chains in new and innovative ways.

Cross-chain solutions are the future of blockchain, and Coinweb has proven to be forward-thinking in this space. The goal is to lead the industry through adaptability, interoperability and innovation on an unprecedented scale.

All from one platform.