Understanding Cross-Chain Swaps: Decentralized Token Exchange Simplified
What are Cross-chain swaps? Blockchain technology is revolutionizing industries such as finance, healthcare, gaming, and supply chain management through increased transparency and efficiency. One significant challenge persists: the lack of interoperability across myriad blockchain platforms. Different types of blockchain, be it first-generation platforms like Bitcoin or more advanced ones like Solana and Polkadot, exist in isolation with distinct chains. What limitation did the Siloed Decentralized System have? Isolated Blockchain Ecosystems: Leading protocols, such as Bitcoin and Ethereum, operate in siloed environments, which eliminates direct token exchanges between different protocols. Decentralized but with Limitations: These blockchains are decentralized but require separate ecosystems for interactions of tokens, which restrains them from smooth functioning Escalating Complexity with Sophisticated Platforms: The Avalanche platform, which accommodates more than 2...