Cross-chain cooperation is one of the biggest problems in the cryptocurrency space, and One inch Network has released a new white paper that talks about an advanced way to solve it. In order to solve this problem, 1inch created the Fusion Atomic Swap Protocol, a mix of the strong security of atomic swaps and the ease of use of intent-based methods.
Anton Bukov, one of the founders of One inch, talked about how the protocol can give people a smooth experience while also using cutting-edge technology. The new system is meant to make it easy for swaps to happen between blockchain networks, even if they use layer-1 (L1) or layer-2 (L2) infrastructure. This improvement takes down the walls between networks, making the decentralized finance (DeFi) environment stronger.
Bukov stated that the system works on three main ideas: not relying on trust; letting protocols grow without the need for centralized powers; and using both Dutch bids and resolver competition to make sure that trades are carried out in the best way possible.
The bitcoin industry is focusing more and more on fixing cross-chain problems at the same time that this white paper comes out. Vitalik Buterin, one of the co-founders of Ethereum, recently talked about the need for stronger ways to make sure that different blockchains can talk to each other easily, especially between Ethereum L2s.
The problems with blockchain compatibility have been a worry for the business world for a long time. Layer-1 blockchains work as separate systems right now and can’t talk to each other directly, so third-party cross-chain solutions are needed. However, these methods often create security holes that make it harder to build infrastructure that is both safe and effective.
Oneinch Network, which is one of the biggest decentralized exchange (DEX) providers on Ethereum, wants to improve the DeFi space as a whole with its new system. In this bigger project, the Fusion Atomic Swap Protocol not only makes things easier for users, but it also helps make cross-chain trades safer and faster.
Vitalik Buterin has previously expressed worries about the risks of control that come with cross-chain links, pointing out possible holes that could allow 51% attacks to happen. Attacks are more likely to happen as more people use cross-chain links. This makes open, trustless systems like 1inch’s new protocol more important.
Some people in the blockchain community are looking at other options, like Polygon’s AggLayer, which tries to connect different networks. However, 1inch’s answer is the first step toward making the cross-chain environment safer and more efficient.
1inch is paving the way for the future of DeFi by creating a protocol that blends the safety of standard atomic swaps with the ease of use of intent-based approaches. The Fusion Atomic Swap Protocol is an important step in their continued work to improve cross-chain functionality, boost the use of decentralized finance, and eventually create a blockchain environment that can work with all other blockchains.
