A major challenge faced by blockchain technology is an issue of interdependence and interoperability of blockchains; it had become tough for asset exchange to be complete between different blockchains. Thus, different blockchain main nets could not leverage the advantages or benefits of another blockchain. For this to be mitigated, it has become necessary to introduce the concept of cross-chain technology. Through cross-chain technology, transactions between blockchain main nets take place securely.
The central focus of our post today is on the decentralized nature of these cross chain transactions. What do we mean by decentralization?
To answer that, imagine when you were in a controlled monitored situation where everything you ever want to do had to be vetted, observed, and accessed by someone else other than you. That is what decentralization is NOT.
Decentralization is not a new concept. It has roots in different parlance and now in technology.
Decentralization refers to the transfer of control, access, and decision-making from a centralized or third-party authority or entity to a distributed network. Decentralization implies that power is not concentrated in the power of one but of many and no one in particular. For blockchain technology, decentralization implies that every transaction or transfer of the asset is verified on a permissionless public chain.
In cross-chain transactions, multiple parties exchange assets across multiple blockchains. It facilitates an easy swap or exchange of tokens between two unique blockchain networks. The users can easily swap tokens directly without the use of a centralized medium facilitated by a smart contract. With cross-chain transactions, there is an assurance of improved privacy, reduction in trading fees, and reduction in time spent in transactions.
Cross-chain transactions ensure that cross-chain swaps are possible and it is easy to transfer assets that are already owned across several blockchains. Therefore, cross-chain transactions are facilitated by the interoperability of blockchains. The asset transferred must be under the same ownership as the individual who initiated the transaction but in general, a cross chain transaction includes a sequence of exchanges at each blockchain.
Are there advantages to cross-chain transactions? Have you ever stopped to think about what those advantages could be?
Apparently, with cross-chain transactions, there is an assurance of improved privacy, reduction in trading fees, and reduction in time spent in a transaction. Technically speaking, the emergence of cross chains was an improvement in themselves to blockchain technologies. With continuous use, it has been said to be more efficient in its use, thus owning to its improved efficiencies.
Cross-chain transactions enable two or more blockchain main nets to trade off their efficiencies, decentralization, features set, and security.
As we can see, decentralization is a major advantage of cross-chain transactions. For cross-chain transactions, this holds a major stake in establishing the authenticity of the blockchain main nets for users.
Indeed if decentralization is not important, centralized exchanges have allowed users to send tokens cross chain since a decade ago. Decentralization of cross-chain transactions shows that transactions can be made across chains without interference from intermediaries or third-party authorities.
A major benefit is that it promotes trust among users of the blockchain’s main net platform. It facilitates a decentralized transaction and exchange in a completely trustless way, thus, integrating existing systems, initiating transactions on other networks, conducting transactions with other chains, transacting between deployments on the same chain by integrating apps, and making it easy to switch one underlying platform for another.
A key feature of ClassZZ main net inter blockchain interactions is that the connected blockchains do not need to communicate with each other directly. Instead, they are able to send packets of information from dedicated channels, which use smart contract modules that include a light client for trustlessly verifying that the state sent by the other blockchain is valid. The trustless and permissionless nature of ClassZZ main net inter blockchain interactions means that any party can operate a relayer and the participating blockchains do not need to trust the parties that transfer the information.
Why is it important to establish trust and credibility in data and transactions?
Let us look at the real world- our traditional financial institutions, the credibility of an entity is typically determined by its power and scale. Entities deemed as “credit-worthy”, such as governments, banks, and large corporations receive credit at a much lower interest rate than small businesses and individuals.
Decentralization is, therefore, a new type of authenticity, credibility, and trust. Users trust that the transactions they make are secure and the address the transaction is being sent to is not monitored and is immutable. They trust that their activities online cannot be hacked into by third parties and that other users’ credibility and activities are verified. With this in mind, we see that it is the trustless, permissionless, and decentralization nature of blockchains that is truly revolutionary and the central idea behind which ClassZZ main net seeks to carry out which is why you would always be made to understand that the entire value proposition of the Class ZZ network, and the associated Te Waka protocol is in its ability to conduct cross chain transactions in a completely trustless, permissionless and decentralized manner.
ClassZZ main net adopts the characteristics of decentralization on a broader scale to ensure the security and authenticity of cross chain transactions performed across it. A major way to achieve this is through the use of a standard protocol. People on different blockchains cannot achieve optimal decentralization without the use of an optimal and standard protocol which in the ClassZZ main net case is the use of the Te Waka Protocol.
The decentralized nature of cross chain transactions creates the possibility of reducing transaction fees, faster transaction processes, and greater ease in transfers and transactions. However, one cannot argue that the major remarkable achievement of ClassZZ main net decentralization of cross chain transactions is the element of greater security in their functioning.
Cross-chain transactions are being decentralized on blockchain technology as the norm behind data sharing, asset exchange, or token exchange security.