Challenges and Solutions of Cross-Chain Interoperability in a Multi-Chain World

In today's rapidly developing blockchain technology, a multi-chain landscape has become an irreversible trend. However, achieving secure and convenient cross-chain interoperability in such an environment remains a challenging topic. As user demand for cross-chain transactions continues to grow, these challenges become increasingly prominent.

Main Challenges

security risks

Security issues are undoubtedly the primary challenge faced by cross-chain transactions. Cross-chain bridge protocols that can attract a large amount of assets often become the prime targets for hackers. Cross-chain bridge protocols rely on trusted third-party validators to handle cross-chain transactions, and if the number of validators is insufficient or the trust model is too centralized, it may be exploited by hackers. In addition, vulnerabilities in the contracts of the protocol itself often serve as points of attack.

High Gas fees

Cross-chain transactions typically incur higher Gas fees. Users need to consider the operating costs on both chains simultaneously, which makes the overall cost of cross-chain transactions relatively high.

Operational Complexity

Each blockchain network has its unique consensus mechanism and protocol, and this decentralized and isolated state leads to complex and cumbersome operations for users when transferring assets and data across chains. For users who trade frequently, they may also face the issue of asset price slippage, further increasing the difficulty of trading.

ERC-7683: New Cross-Chain Standard

To address these challenges, the industry has proposed a new standard called ERC-7683. This standard aims to simplify, speed up, and secure cross-chain transactions through a shared execution network.

The core concept of the ERC-7683 standard is based on the CrossChainOrder structure, providing a standardized smart contract interface that allows for a unified API implementation for cross-chain transaction execution systems. This approach greatly enhances the flexibility and user-friendliness of cross-chain operations.

Practical Applications and Development

Currently, multiple projects have begun to adopt the ERC-7683 standard. A certain Layer 2 solution announced the adoption of this standard, aiming to achieve more efficient asset transfer operations and promote application layer interoperability in the Ethereum ecosystem. Another well-known DEX platform also stated that it will adopt this standard in its cross-chain collaborations.

It is worth noting that the ERC-7683 standard primarily addresses the standardization issues at the implementation entry point to ensure consistency in user experience. However, it does not directly solve the liquidity problems in cross-chain transactions. The successful implementation of this standard requires the formation of a broad network effect—more use cases being adopted, more users utilizing it, in order to attract a sufficient number of active "Fillers" to support users' cross-chain needs.

Industry Support and Future Outlook

Several key figures in the industry, including co-founders of Ethereum, have expressed support for the ERC-7683 standard. They believe that this standard will greatly simplify cross-chain operations, allowing users to transfer cross-chain assets with just a few simple steps.

In the Web3 era, a multi-chain landscape has become an inevitable trend. The optimization and simplification of cross-chain transactions, along with the further release of liquidity, will be key to future development. The ERC-7683 standard directly addresses the pain points of cross-chain transactions and is expected to significantly enhance interoperability between blockchains, bringing profound impacts to the entire blockchain world.

Looking ahead, with the widespread adoption of the ERC-7683 standard, users can expect a smoother cross-chain experience. This will not only bring convenience to users but is also expected to inject new vitality into more DeFi projects, driving the rapid development of the entire ecosystem.