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Moonbeam

Interoperability in blockchain has been a longstanding yet often elusive goal, similar to scalability, where each solution appears to deliver only incremental benefits compared to the status quo. However, with seamless cross-chain solutions like RocketX finally emerging, has the interoperability problem finally been put to rest?&nbsp; 
True interoperability between blockchain ecosystems offers plenty of allure for developers and users alike. The liquidity in token markets is fragmented across many different exchanges and networks, and often, the path between two assets, especially more obscure altcoins, can be convoluted and even involve having to use another crypto as a medium of exchange.&nbsp; 
The ability to send tokens, communications, and data between otherwise unconnected chains would make for a far more friendly user experience and unblock liquidity within the DeFi markets. Furthermore, it could help foster innovation and collaboration, making it possible for developers of apps from different platforms to work together more seamlessly.&nbsp; 
<h2 id="b-br-navigating-the-interoperability-challenge-b"> Navigating the Interoperability Challenge</h2> 
Over the years, the solutions that have emerged haven’t been able to solve the full extent of the problem – and, in some cases, have thrown up entirely new issues. As the original smart contract platform, Ethereum held a significant first-mover advantage with an ecosystem already well established by as early as 2017. This made it an attractive option for later iterations, such as Polygon and Binance Smart Chain, to choose EVM compatibility, making it easy to deploy Ethereum apps on multiple chains. By offering a degree of interoperability, newer chains could also tap into Ethereum’s thriving community.&nbsp; 
However, multichain networks such as Polkadot and Cosmos attempted to take the concept a step further. They offer full interoperability between the chains within their networks, with projects such as Moonbeam and TOKI bringing EVM compatibility to their respective ecosystems. However, while these networks have fostered a considerable amount of cross-chain value within their own boundaries, the challenge of unlocking liquidity between networks is still a challenge.&nbsp; 
Amid rising demand for cross-chain liquidity and interoperability, bridges became increasingly prevalent. However, although bridges do allow users to send assets between blockchain systems that would otherwise be unconnected, they’ve inadvertently created a whole set of new problems. Firstly, the user experience isn’t particularly friendly – the user needs to navigate potentially multiple crypto wallets, as well as the bridge interface itself. But a more serious problem is the lack of security that became evident once bridges began gaining popularity.&nbsp; 
Blockchains are secured by the decentralized networks that validate transactions, but when a user sends funds via a bridge, they are removing them from that secure environment temporarily and entrusting them to the bridge. Malicious actors quickly identified deficiencies, such as the coding vulnerabilities that enabled the <a href="https://www.chainalysis.com/blog/wormhole-hack-february-2022/">Wormhole hack</a> in 2022 and the suspected rug pull associated with Multichain. At one point, <a href="https://www.chainalysis.com/blog/cross-chain-bridge-hacks-2022/">Chainalysis</a> highlighted bridges as the top security risk in the Web3 sector, accounting for over two-thirds of all funds stolen.&nbsp; 
<h2 id="b-br-interoperability-upgraded-b"> Interoperability Upgraded</h2> 
Thankfully, the emergence of bridges didn’t stop blockchain innovators from working on the interoperability problem, and the next generation of interoperability solutions is proving far more fit for purpose than their clunkier predecessors. <a href="https://www.rocketx.exchange/">RocketX</a> is one example. The project aims to be a one-stop shop for buying, selling, and swapping cryptocurrencies, enabling access to the entire digital asset ecosystem via a single user interface.&nbsp; 
Rather than attempting to build bridge infrastructure from scratch, RocketX simply operates as a middleware solution that connects via the APIs of hundreds of centralized and decentralized exchanges and DeFi protocols, allowing straightforward, seamless cross-chain swaps between over 20,000 assets.&nbsp; 
Furthermore, since RocketX has such enormous reach across the crypto markets with over $100 billion of liquidity aggregated, it can also find the swap with the best available rate, allowing users to compare and select the option that best suits their needs. Since it doesn’t operate in the same way as a bridge, RocketX is also non-custodial, so funds never leave your own crypto wallet, and the project is also planning to launch wallet-less swaps in Q1 2024, making the user experience even more seamless.&nbsp;&nbsp; 
For too long, the industry has adopted a piecemeal approach to interoperability, attempting to solve legacy problems with Band-Aid solutions that only create a new set of issues, further degrading the user experience. With a more holistic solution that puts the user front and center, the next generation of interoperability protocols will be poised for success amid a new wave of interest in digital assets.&nbsp;

Seamless Cross-chain Activity is the Next Frontier of Crypto Interoperability

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