What Is ‘Cross-Chain Interoperability’ and How Do Oracles Facilitate It?
Cross-chain interoperability is the ability for different independent blockchains to communicate and exchange data or assets securely. Oracles facilitate this by acting as a trusted, decentralized messenger that relays cryptographically verified information from one blockchain to another.
This allows smart contracts on one chain to react to events, prices, or state changes that occur on a completely separate chain.
Glossar
Independent Blockchains
Architecture ⎊ Independent blockchains represent a departure from permissioned or centralized ledger systems, prioritizing decentralized control and data sovereignty within the cryptocurrency ecosystem.
Cross-Chain
Transfer ⎊ Cross-chain capability refers to the mechanism enabling the atomic movement of digital assets and data between distinct, sovereign blockchain networks.
Interoperability
Protocol Integration ⎊ This capability allows distinct blockchain networks or decentralized applications to communicate and exchange value or data seamlessly, which is vital for cross-chain derivatives settlement.