David Marcus, CEO of Lightspark, a company that offers lightning network (LN) related services, has stated that LN will become the “interoperability neutral settlement layer” for the world. Marcus declared that only Bitcoin is “neutral enough” to be implemented as the enabler between national payment systems, granting companies and institutions adopting it an edge for […]
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Eclipse And Neon EVM Drive Solana-Ethereum Integration For Blockchain Interoperability
Layer 2 (L2) blockchain Eclipse and developer-oriented bridge Neon EVM have formed a new collaboration to implement changes in the blockchain landscape, increasing interoperability and scalability with the integration of Ethereum (ETH) and Solana (SOL).
Aiming to combine the capabilities of both blockchains, Eclipse has consolidated the compatibility between the Ethereum Virtual Machine (EVM) and the Solana Virtual Machine (SVM) by deploying Neon Stack.
Solana And Ethereum Integration
The primary objective of this collaboration is to integrate Solana’s transaction handling capabilities, which can process thousands of transactions per second, into Ethereum.
This integration will be facilitated by Neon Stack, a standardized development stack that enables smart contract developers to achieve Ethereum Virtual Machine compatibility on Solana Virtual Machine-based blockchain networks. Eclipse plans to leverage Neon Stack on its SVM L2 to facilitate this integration.
The Neon Stack consists of Neon EVM smart contracts and Neon Proxy. It has been live on the Solana mainnet since July 2023. It has deployed numerous Ethereum-native Solidity decentralized applications (dApps), including decentralized finance (DeFi), gaming, and decentralized exchanges (DEXs), on Solana from its existing codebase.
Neon EVM-Eclipse Partnership For Cross-Chain Development
Davide Menegaldo, Chief Commercial Officer (COO) of Neon EVM, expressed enthusiasm for Neon Stack and the collaboration, stating:
With Neon Stack, we are paving the way for high-performance, scalable dApps infrastructure that transcends the limitations of traditional blockchain architectures and redefines computational efficiency. We are pleased to see Eclipse as the first industry partner to utilize the Neon Stack.
On the other hand, Neel Somani, founder of Eclipse Labs, the company behind the development of the Layer 2 blockchain, also emphasized the importance of the partnership, saying:
Our collaboration with Neon Stack enables developers to seamlessly deploy their dApps from EVM chains to Eclipse, further strengthening the harmonization between Solana and Ethereum. Solidity developers who wish to build on a high-performance L2 that leverages the strengths of the SVM can finally do so.”
Interestingly, the Ethereum ecosystem hosts over 13,000 dApps, with only a small fraction, 0.4%, cross-chained with Solana. This collaboration between Neon EVM and Eclipse could also provide further opportunities for developers to build new dApps with the new integration.
In sum, it is believed that developers will be able to build advanced dApps that leverage the features of Ethereum and Solana, along with their respective native ecosystems and virtual machines, by leveraging the design of the NEON Stack and Eclipse.
As of the current update, the native token of NEON EVM, NEON, is trading at .0135. It has shown a 2.6% recovery over the past 24 hours, aligning with the overall positive movement in the cryptocurrency market. However, during the past 7 days, the token has witnessed a price decline, experiencing a nearly 8% drop.
Featured image from Shutterstock, chart from TradingView.com
Standardization of Blockchain Data Format Enhances Interoperability Between Chains – Nick Yushkevich
According to Nick Yushkevich, standardization of blockchain data formats is crucial as it enhances the interoperability of distinct protocols and fosters broader adoption of the technology. Yushkevich, the director of product at blockchain infrastructure provider Quicknode, added that such standardization helps to improve communication between systems. Unlocking the Full Potential of Blockchain Data Yushkevich stated […]
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Goldman Sachs, CBOE, Standard Chartered, and Others Complete Blockchain Interoperability Pilot on Canton Network
Goldman Sachs, the CBOE, Standard Chartered, and other financial institutions participated in the pilot of the Canton Network, a protocol aiming to achieve interoperability in apps using resources from various blockchains. Digital Asset, the company behind the pilot, stated that this test showed the opportunity to reduce costs, risk, and inefficiencies by using this kind […]
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Wormhole and AMD Forge Alliance to Revolutionize Blockchain Interoperability
On Wednesday, the blockchain interoperability platform Wormhole revealed it is collaborating with the American multinational semiconductor company AMD (Advanced Micro Devices). Wormhole plans to utilize AMD’s Field Programmable Gate Array (FPGA) technology in order to bolster cross-chain communication and multi-chain scalability. AMD’s FPGA Tech to Power Wormhole’s Interoperability Ambitions Wormhole, an interoperability platform for blockchains, […]
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Analog Secures $16 Million for Web3 Interoperability Boost, Launches Cross-Chain Partnership Program
On Monday, the Web3 blockchain interoperability platform Analog announced the team has raised million in a funding round from a wide array of venture capitalists and firms including Balaji Srinivasan, Tribe Capital, and Wintermute. Furthermore, Analog has launched its Launch Partners Program to bolster the presence and market dominance of cross-chain initiatives. Million […]
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Polymer Labs Secures $23 Million to Build Ethereum’s ‘Interoperability Hub’
Polymer Labs, the inter-blockchain communication (IBC)-based networking layer two (L2), recently disclosed that it had raised million via a Series A funding round. Polymer said only Ethereum and all chains under the IBC control will initially be compatible with its interoperability solution.
‘Connecting Billions of Dollars in Value Across Rollups’
Polymer Labs, one of the first modular Inter-Blockchain Communication (IBC)-based networking layer two (L2), recently announced that it had closed a million Series A funding round. The funding round was co-led by Blockchain Capital, Maven 11, and Distributed Global, with the participation of Coinbase Ventures, Placeholder, Digital Currency Group, North Island Ventures, and Figment Capital.
According to a statement, Polymer Labs will use the funds raised to further develop the L2, which serves as an Ethereum Interoperability Hub. The L2, which is yet to be launched, seeks to connect billions of dollars in value across rollups. Polymer said it is hopeful that this solution will not only bring scalability benefits but will also prove to be reliable and less susceptible to hacking attacks.
“Polymer’s mission is to establish the next generation of the internet by ensuring that the interoperability layer connecting all blockchains is neutral, open, modular, and permissionless across ecosystems,” Peter Kim, a Polymer co-founder said.
Meanwhile, Yuan Han Li, an investor with Blockchain Capital, has said that his organization now supports Polymer’s goal of bringing interoperability standards to Web3. However, the statement said only Ethereum and all chains under the IBC control will initially be compatible with Polymer’s solution.
Commenting on the partnership between his organization and Polymer, he said: “We are really excited that Polymer is bringing the generalized IBC primitive into the Ethereum rollup landscape by building a versatile transport hub, and thrilled that we at Eigenlayer have the pleasure of partnering with the passionate team at Polymer.”
What are your thoughts on this story? Let us know what you think in the comments section below.
IMF Working on Platform to Support CBDC Cross-Border Interoperability
The International Monetary Fund (IMF) is working to develop a platform that would serve as an interoperability layer for central bank digital currencies (CBDCs), allowing for settlements among different countries. According to statements from IMF Managing Director Kristalina Georgieva, this would avoid the underutilization of CBDCs for domestic purposes.
IMF Working on CBDC Cross-Border Integration Platform
The International Monetary Fund (IMF) is building a solution to integrate and support cross-border payments among central bank digital currencies (CBDC). According to IMF Managing Director Kristalina Georgieva, this would prevent underutilization of these currencies, expanding their usage to international markets.
At a conference in Morocco, Georgieva reinforced the need for interoperability. She stated:
CBDCs should not be fragmented national propositions. To have more efficient and fairer transactions we need systems that connect countries: we need interoperability.
Georgieva also remarked on the need for CBDC regulation on a global scale to support this interoperability use case. The failure to reach agreements on this subject would lead to the growth of cryptocurrencies as a substitute for the void created, Georgieva explained.
The official added that 114 central banks were involved in CBDC exploration projects, with ten already arriving at the finish line.
Some CBDC projects are already live. China is already using its CBDC, the e-yuan, to pay salaries in some regions of the country, while the Venezuelan petro, a state-issued digital currency, is facing a liquidation amidst a cryptocurrency corruption probe, according to recent reports.
Also, the European Central Bank (ECB) is in its final phases of deciding on issuing a digital euro that would be focused on providing payment rails to Europeans.
A Case for CBDCs
Georgieva stressed the benefits that the issuance of CBDCs might bring to countries adopting them, stating that if implemented currently, they might “help to increase inclusion” and “strengthen the resilience and efficiency of payment systems.”
The executive also commented that CBDCs could “make cross-border payments and remittances cheaper,” as the cost of transferring money across borders stands at 6.3%, an industry that brings service providers billion annually.
Georgieva, who has advocated for anti-crypto regulation in the past, established differences between cryptocurrency assets and CBDCs, clarifying that, for her, the latter should be backed by assets. Furthermore, she stated that cryptocurrencies backed by assets could be considered investment opportunities, calling unbacked cryptocurrencies “speculative investments.”
What do you think about the IMF’s work on a CBDC interoperability platform? Tell us in the comment section below.
Developers Propose Cross-Chain Bridge for XRPL Network to Enhance Blockchain Interoperability
Software engineers and members of the development lab Ripplex want to create a cross-chain bridge for the XRPL network to bolster cross-chain transfers between different blockchain networks. According to a recent Github draft, the proposal outlines how the cross-chain bridge could function and suggests ways to prevent transaction replay.
Ripplex Dev Proposes XRPL Cross-Chain Bridge Technology
According to a recent draft submitted to Github, developers want to create a cross-chain bridge for the XRP Ledger (XRPL). The technology would allow cross-chain transfers and provide blockchain interoperability between XRPL and various networks. “In this proposal, a cross-chain transfer is not a single transaction,” the GitHub draft details. “It occurs on two chains, requires multiple transactions, and involves an additional server type called a ‘witness.’”
If a cross-chain bridge is implemented for XRPL, the blockchain will join numerous networks that leverage this technology, including Ethereum, Avalanche, Solana, Binance Smart Chain, and others. The proposed design by XRPL developers includes a new server type, three new ledger objects, and eight new transactions. The summary also describes a method to “prevent the same assets from being wrapped multiple times (prevent transaction replay).” Mayukha Vadari, a software engineer and Ripplex developer, shared the proposal on social media.
“We just published an official XRPL Standards spec for cross-chain bridges,” Vadari said. “Check it out and let me know if you have any thoughts.”
The cross-chain idea follows the push to create an Ethereum Virtual Machine (EVM) sidechain in October that is compatible with the XRP Ledger and Ripple transaction protocol (RTXP). Currently, XRP, XRPL’s native cryptocurrency, is the sixth-largest digital currency by market capitalization. However, over the last seven days, it has lost 7.7% against the U.S. dollar.
Ripple Labs is also dealing with a legal battle with the U.S. Securities and Exchange Commission (SEC), and some suspect a settlement between the two parties is possible. XRP, a token issued in 2012, has been accused of being an unregistered security by the SEC. The U.S. regulator charged Ripple Labs in 2020, accusing the firm and executives of selling an unregistered security without permission from the SEC.
What are your thoughts on the potential impact of a cross-chain bridge for the XRPL network and the wider blockchain ecosystem? Share your thoughts in the comments section below.
Interoperability in the Blockchain — What Is It and How Does It Work?
We’ve all equated decentralization with the blockchain by now, which makes perfect sense as one of the main characteristics of blockchain technology is its decentralized nature.
However, with decentralization comes a lot of uncertainty. How can different blockchains connect? Can we find anything universal about them? It is clear that there are many dilemmas here, which is why blockchain interoperability has become a hot topic in the last few years.
This phenomenon is bound to have a profound impact on the crypto sphere and beyond and will undoubtedly lead to more innovation and growth. But what is it? How does it work? More importantly, what does it mean for you? Let’s find out!
Blockchain Interoperability Explained
Blockchain interoperability is a highly complex technology from a scientific point of view. However, what it does is simple — it allows different blockchains that operate independently to connect and communicate.
Thanks to interoperability, blockchains can share data, information, and more. In other words, regular users get to use different blockchains without worrying about compatibility issues.
For a better understanding, it’s best to consider emails. When you send an email to someone, you don’t have to worry about choosing the same provider the other person uses. They might have AOL, Outlook, Yahoo, or any other service, while you use Gmail or Zoho Mail. It doesn’t matter, as the email will reach the other address regardless of the provider. This interoperability of email technology is what made it so successful and widely adopted in the first place.
With blockchains, this isn’t true. Some blockchains are interoperable, and we have several pioneering this technology, like Polkadot, Cosmos, Cardano, and others. However, most aren’t, so you may not be able to use them all the time.
With blockchain interoperability, every blockchain would be able to interact and send data and messages to another.
Importance of Interoperability for Web3
As we all know, Web3 is on its way. We might not be able to predict how it’ll look, but various blockchains will certainly play a key role.
What’s more, decentralized finances will be one of the biggest parts of Web3, and it’s one of the main reasons why we’ll need to introduce true blockchain interoperability to make this a reality. People will want to manage their finances and make payments across the web and different blockchains without having to use different tokens and coins every time.
Furthermore, different blockchains have different functionalities, and a regular user will have to deal with many of them on a daily basis. This will need to be possible without worrying about interoperability. In essence, without interoperability, it would be as if we couldn’t use various websites and platforms on the web as easily and simultaneously as we do today.
So, if we want to have Web3, we’ll need a way of implementing the latest solutions on the new internet just as we do today. In other words, we’ll need blockchain interoperability.
Examples of Blockchain Interoperability Solutions
At the moment, we have many projects attempting to solve interoperability, each in its own way. Polkadot and Cardano are one of the most prominent blockchains on the web that are dealing with it.
Polkadot uses something called parachains. These work like individual Layer-1 blockchains and can function simultaneously on the Polkadot network. Each chain relies on the security of the main chain but still preserves its individuality.
On the other hand, Cardano focused on smart contracts from the start, which effectively led to interoperability.
Cardano and Polkadot aren’t the only projects trying to solve interoperability between blockchains. We also have a lot of other smaller initiatives that have gone further.
A good example is t3rn, a smart contract hosting platform that offers interoperable smart contract implementations with an added fail-safe mechanism that ensures the reversibility of transactions, another thing that’s currently not possible with most blockchains.
t3rn offers uniform standards for integrating transaction-based and smart contract-driven blockchains through unique gateways. In other words, multi-chain execution and interoperability are assured.
Bottom Line
Blockchain interoperability is a complex topic, and it certainly won’t be easy to implement one solution that will handle interoperability for the entire internet. However, it’s necessary and inevitable for Web3. It will be interesting to see how it is handled in the future, but we hope that you’re now aware of how important it is for the web of tomorrow.