Hi, ladies and boys, welcome to Uncle Cat's Coin Talk. Uncle Cat was invited to participate in the Plaza event to share with you about DeFi. This is the eighth article. This article mainly introduces the interoperability of cross-chain and its future. In fact, I don't know much about blockchain technology. Today, I took the opportunity to write this article and consulted a lot of information. Let's learn and understand the present and future of cross-chain interoperability technology together.
What is cross-chain interoperability?
CrossChainInteroperability refers to the ability of different blockchain networks to communicate and interact with each other. In an interoperable environment, each independently operated blockchain can seamlessly share information and value without the need for a centralized transfer intermediary.
In fact, from the introduction, we can see that cross-chain interoperability brings better interactive capabilities to the current cross-chain ecology, expands the scope of application, improves the liquidity of blockchain, and improves certain security because no centralized intermediary is required. It promotes ecological innovation capabilities through more efficient and accelerated ecological development, and also provides assistance for promoting unified annotations and protocols between different blockchains because of the interactive capabilities. In terms of user experience, because it promotes communication and efficiency between blockchains, it also indirectly promotes blockchain to be gradually accepted and recognized by the mainstream market.
The present and future of cross-chain:
With the continuous development of blockchain technology in recent years, coupled with the empowerment of the ultra-high financial attributes of the crypto market, the development of cross-chain has also shown a booming trend.
At present, the market growth data of cross-chain is very good. The current market value of global cross-chain interoperability is 30 million US dollars, and it is expected that this market will reach 1 billion US dollars in 2028, with a reviewed growth rate of 27%. At the same time, experts analyze that this market will reach a market value of 2.3 billion US dollars in 2030, with a reviewed growth of 28%.
The reason why the market value of cross-chain interoperability has such a high expected future and development potential is still due to growth-driven factors. With the increasing demand for blockchain communication, the development and efficiency of optimizing blockchain, and the continuous progress of DAPP, the growing demand for seamless interaction has also been prompted. At the same time, the core decentralization of blockchain is also the main driving force for promoting cross-chain interoperability.
Regardless of the future trend of blockchain or the speed of market value growth, the growth and speed of cross-chain are taking off along with the vigorous development of blockchain. With the increase in technical requirements and market demand, the growth of cross-chain in the future will only be higher than we expected. At the same time, cross-chain technology will be increasingly applied to our daily use and transactions.
DeFi’s push:
As the DeFi market continues to expand, it is becoming more and more popular with traders. The transaction volume and traders on the chain are increasing. With the emergence and development of cross-chain technology, it has been applied to more and more DeFi projects. For example, we often use DEX decentralized exchanges, lending platforms and yield aggregators, etc. With the expansion of the DeFi market, the increase in traders and transaction volume, the pace of decentralization is getting faster and faster, and cross-chain will inevitably provide DeFi with better technology on the road to decentralization. The most popular decentralized financial model plus excellent cross-chain technology complement each other and will inevitably help each other to create a better future in the future.
However, although cross-chain is booming, there are still many challenges to be faced in the future. What we can see now is that cross-chain technology in cross-chain usually encounters challenges of security issues. Although the probability of cross-chain loss is getting less and less with the change of technology, it is still not completely avoided. In addition, due to the openness of the cross-chain protocol, it has been attacked by many hackers. Many well-known projects have been hacked and their funds stolen due to cross-chain. This also leads to the fact that although blockchain technology is necessary for the times, it is still subject to certain limitations brought by its own defects, and this limitation is also an obstacle to promoting the application of blockchain.
The most important thing is that although cross-chain technology does not require an intermediary, with current technology, if multi-chain interaction is to be fully realized, it still requires the support of a certain intermediary.
Of course, no matter how the cross-chain interoperability technology currently develops, I am still very optimistic about the future of this technology. If we can fully realize multi-chain interaction without intermediaries and achieve safe and efficient cross-chain, then this will definitely be one of the important trends in the vigorous development of the entire blockchain.
Finally, thank you for following Uncle Mao’s Talk about Coins. I am still relatively unfamiliar with blockchain technology. I have consulted a lot of information to write this article, and many unfamiliar words still need to be slowly understood before they can be explained to you. If the writing is not good, please forgive me. I also take this opportunity to learn blockchain technology with you.