Bridging Blockchains: The Rise of Cross-Chain Protocols and Interoperable Ecosystems

Alice Lawrence

No bp7gx_v1, OSF Preprints from Center for Open Science

Abstract: As blockchain technology matures, the once-isolated networks that powered individual cryptocurrencies are now converging through a new wave of interoperability solutions. Cross-chain protocols—systems that enable different blockchains to communicate and share data or assets—are rapidly reshaping the decentralized landscape. These innovations address one of the most critical limitations of early blockchain architecture: siloed ecosystems that cannot seamlessly interact. This paper explores the evolution, technical mechanisms, and real-world implementations of cross-chain interoperability, including token bridges, relays, and multi-chain platforms such as Polkadot, Cosmos, and Layer Zero. We examine how these protocols are unlocking new levels of liquidity, composability, and user experience across decentralized finance (DeFi), gaming, and supply chain applications. While the promise of a fully interoperable blockchain future is compelling, we also discuss the security risks, fragmentation challenges, and the ongoing tension between decentralization and performance. Ultimately, this research highlights the pivotal role of interoperability in the next phase of blockchain adoption and outlines the key players and technologies driving this transition.

Date: 2025-01-14
References: Add references at CitEc
Citations:

Downloads: (external link)
https://osf.io/download/6814a428da112f90969fde83/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:bp7gx_v1

DOI: 10.31219/osf.io/bp7gx_v1

Access Statistics for this paper

More papers in OSF Preprints from Center for Open Science
Bibliographic data for series maintained by OSF ().