Introduction to Cross-Chain Smart Contracts

cross-chain exchange
Cross-chain decentralized exchanges (DEXs) can provide users with the ability to execute transactions that draw liquidity from token pools across different blockchain networks to ease the liquidity decentralization of multi-chain DEX deployments question. For example, during a transaction, a user’s input tokens can be split and bridged to different blockchains to achieve the best strike price, and the resulting output tokens are bridged back to the original blockchain and into the user’s wallet. As a result, accessible liquidity across all blockchain networks will be significantly improved, providing users with lower transaction slippage and higher fees for liquidity providers on each chain.

Additionally, Cross chain bridge development DEXs can also be designed to enable users to exchange their native tokens from one ChainLink environment for their native tokens on a different ChainLink environment — for example, users can exchange ETH on the Ethereum blockchain Exchange for BTC on the Bitcoin blockchain. This will give users access to native assets on different blockchain platforms without the need for packaged tokens or centralized exchanges.

Cross-chain revenue aggregation
Cross-chain revenue aggregators can deploy funds deposited by users into a variety of different DeFi protocols that exist in a multi-chain ecosystem. By increasing the range of potential revenue generating sources, users can generate larger yields without manually bridging their tokens across chains and chasing the highest yields themselves. This will significantly reduce the friction of multi-chain yield farming, as users will not need to manually bridge across environments. Instead, the entire process will be abstracted away.

This design will also increase the liquidity of the multi-chain ecosystem by helping to increase the total value locked in DeFi applications in new and upcoming on-chain environments.

Cross-chain lending
Cross-chain money markets can facilitate the creation of cross-chain loans, enabling users to deposit collateral. This will allow users to keep their collateral on the highly secure blockchain of their choice, while borrowing tokens on the higher throughput blockchain for deployment into applications in that on-chain environment.

Cross-chain money markets can also authorize users to borrow tokens from market deployments on another blockchain with lower interest rates, and the borrowed funds are then bridged back to the chain that opened the loan. This could help standardize yields across the blockchain, thereby reducing borrowers’ costs in deployments in illiquid money markets with higher borrowing rates.

Cross-chain DAO
Decentralized Autonomous Organizations (DAOs) can leverage cross-chain interoperability to enable on-chain voting on one or more higher-throughput blockchain networks, and then forward the results back to the more expensive place where the protocol’s core governance contract resides. blockchain network. This will incentivize greater participation by reducing transaction costs for DAO participants, while still maintaining on-chain transparency and censorship resistance for each participant.

In addition, cross-chain DAOs can seamlessly manage and modify the parameters of smart contracts across different blockchain networks, thereby expanding the scope of what token holders can manage in one or more on-chain environments.

Cross-chain NFT
A cross-chain non-fungible token (NFT) marketplace can allow users to list and bid on NFTs hosted on any blockchain network. This helps increase the accessibility and liquidity of NFTs and enables them to bridge seamlessly across ChainLink boundaries once the bidding process is complete. Additionally, on-chain gaming applications that exist on one blockchain can leverage cross-chain interoperability to track ownership of NFTs on another blockchain. This will allow users to securely store their NFTs on the blockchain of their choice, while gaining the ability to use NFTs in gaming applications on any other blockchain.

Storefront Smart Contract
Existing single-chain or Bridge Smart Contract Development Services can greatly benefit from cross-chain interoperability by deploying storefront smart contracts (smart contracts that act as gateways to smart contract applications on another blockchain network). These contracts allow users to stay in the ChainLink environment of their chosen blockchain while depositing and interacting with existing DApps running in a completely different on-chain environment.

Users no longer need to manually bridge across blockchains to interact with smart contracts that only exist on another blockchain — they may not even need to know which blockchain, sidechain, or 2nd blockchain the smart contract application is running on layer network. They will be able to access the application as if it were just running on the blockchain they had transacted on.

Storefront smart contracts can be attached to any existing decentralized application, such as a derivatives platform or money market, in a backwards-compatible way. This will enable Build a cross chain bridge interoperability to be added to existing protocols in a permissionless manner due to the composability of smart contracts. Creating a more seamless and interoperable ecosystem will significantly facilitate the growth of the multi-chain economy.