We define blockchain as a decentralized ecosystem powered by distributed ledger technology. However, as we delve deeper, we discover it is not a cumulative ecology. There are numerous blockchains available on the market, each with its own ecosystem.
Individual chains were aimed and developed with specific use-cases in mind, therefore they have unique features, limits, and degrees of decentralization. For example, if the goal of a certain blockchain is to attain a higher level of transaction throughput, the blockchain may have a lower level of security with decentralization.
Blockchains cannot communicate with one another since they live in silos. One chain cannot aid other chains, or one blockchain’s weaknesses cannot be balanced out by utilizing the advantages of a different chain. These divisions reduce the power and worth of the Blockchain industry, making it harder for users and blocking business growth.
This is where blockchain technology comes into play. It is a solution for enhancing blockchain communication with one another. A cross-chain design allows two or more blockchains to trade off their efficiency, decentralization, feature set, and security. This can increase chain efficiency, minimize fragmentation, and allow users and features to move more easily between blockchains.
What is cross-chain technology?
Interoperability refers to a distributed ledger technology (DLT) design’s ability to get data from or exchange data with external systems. Cross-chain technology allows data to be exchanged between DLT designs or external systems, facilitating interoperability. Such data exchanges can increase the security of DLT architectures while also increasing flexibility and resolving performance issues.
Sharding addresses low throughput and scalability difficulties. Sharding is done for a distributed ledger when it is broken into small shards that may be handled separately, allowing for parallel transaction processing to improve performance and scalability.
Cross-chain technology applications include asset transfers, cross-chain oracles, and cross-chain smart contracts. During asset transfers, assets are transferred from one distributed ledger to another. Cross-chain oracles transfer data from one distributed ledger to another rather than altering assets.
Cross-chain oracles, for example, can confirm that specified events (such as transactions) occurred on another distributed ledger. Cross-chain smart contracts relate to the ability to begin the execution of a smart contract on another distributed ledger, which can improve automation.
Cross-chain smart contracts, unlike cross-chain oracles, must be performed by issuing transactions on the destination chain, which affects the distributed ledger’s state.
Why is blockchain interoperability important?
Interoperability in blockchain is crucial because it allows different blockchain networks to communicate and exchange data with one another. This is critical for the establishment of a completely decentralized ecosystem in which diverse apps and services can interact with one another effortlessly.
Interoperability allows blockchain networks to communicate without being segmented and allows for the interchange of data and assets across networks. This is significant since there are presently many blockchain networks, each with its own set of unique features and restrictions. Interoperability allows users to take use of the benefits of several blockchains and have access to a broader choice of decentralized services.
Interoperability is critical for blockchain technology’s scalability. When various blockchain networks can connect with one another, it becomes possible to build more sophisticated decentralized systems capable of processing large volumes of data and transactions.
Jumbochain’s Cross Chain Compatibility
Jumbochain is being developed to give cross-chain compatibility, as the JRC20 standard is compatible with other chain tokens such as BEP20, ERC20, and CBDCs, among others. Users will hold the other chain token on Jumbochain, which may be used for trading on the Jumbochain-supported platforms.
Users will link their centralized wallets like Metamask/ Trustwallet to Jumbochain simply, making token transfers from other chains to Jumbochain easier.
Moving other chain tokens to JRC20 will benefit from the unique rewarding mechanism and attributes of Jumbochain, such as transaction speed/low fee.
Jumbochain’s simple RPC protocols will also assist dApps such as exchanges in rapidly and simply migrating to Jumbochain and providing their users with the lowest gas charge and NFT capabilities.
For more updates about the Jumbochain, follow us👇