Cross-chaining is how to transfer the token on one chain to another. From the point of view of accounting, the single blockchain solves the problem of how to accurately book accounts. Cross-chain solves the problem of how to accurately record two account books in the two account books when the two users are transferred to the same user or different user-controlled accounts.
Not an agreement
In many white papers or technical articles, cross-chaining is called “protocol”. The information transmission protocol only needs to receive information, and the sender receives feedback without considering the problem of repeated transmission of information.
However, if you synchronize the data between the books, you need to make sure that the two books change in the same way, otherwise there will be double payment or loss of value.
Due to the rapid development of blockchain technology, each chain accounting mechanism and consensus mechanism are different, and the establishment of a common cross-chain protocol becomes more complicated. Cross-chain “agreements” are more like bilateral and multilateral trade agreements. Personalization is more obvious in the process of realization, and large-scale reunification is more difficult. There is a need to implement a cross-book accurate accounting problem for two books by technical means.
Cross-chain is actually a mechanism. Cross-chain is essentially a set of clearing mechanisms between chains and chains, and the essence of liquidation is accurate accounting.
The most important application scenarios after cross-chain implementation are distributed trading, centralized bidding, and distributed clearing mode exchanges.
If the consensus mechanism is the soul core of the blockchain, then for the blockchain, especially the alliance chain and the private chain, the cross-chain technology is the key to realizing the value network. It is to save the alliance chain from the scattered islands. The good medicine is the bridge that expands and connects the blockchain outward.
Exchanges in digital currencies have long appeared, and the earliest exchanges carried out exchanges between legal currency (the currency issued by the state) and Bitcoin. Later, with the increasing variety of digital currencies, many exchanges began to exchange between different types of digital currencies. The exchange between different types of digital currencies carried out by the exchange is a realization of a cross-chain value transfer. Strictly speaking, the currency exchange is the realization of a cross-chain technology.
Because different currencies are on different blockchains. The blockchain itself is created to solve the problem of trust. How do users in different blockchains ensure that their rights are not compromised?
The credit of a single individual or institution is not enough to support large transactions. As a result, there has been a technology of centerless exchanges – using blockchain technology to solve the credit problems of cross-chain.
As a result, a problem with the non-central cross-chain technology has arisen: how to allow multiple entities to jointly control an account?
There are different solutions for different blockchains. Most blockchains support multi-signature wallets, and this can be done with multi-signature wallets. In addition, the cryptographic method can be used to realize the splitting of the private key by using the grouping calculation, thereby implementing multiple subjects to control an account by voting. This problem is already a very technically complicated problem.