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Bridging Blockchains: The Rise of Cross-Chain Protocols and Interoperable Ecosystems

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  • Lawrence, Alice

Abstract

As blockchain technology matures, the once-isolated networks that powered individual cryptocurrencies are now converging through a new wave of interoperability solutions. Cross-chain protocols—systems that enable different blockchains to communicate and share data or assets—are rapidly reshaping the decentralized landscape. These innovations address one of the most critical limitations of early blockchain architecture: siloed ecosystems that cannot seamlessly interact. This paper explores the evolution, technical mechanisms, and real-world implementations of cross-chain interoperability, including token bridges, relays, and multi-chain platforms such as Polkadot, Cosmos, and Layer Zero. We examine how these protocols are unlocking new levels of liquidity, composability, and user experience across decentralized finance (DeFi), gaming, and supply chain applications. While the promise of a fully interoperable blockchain future is compelling, we also discuss the security risks, fragmentation challenges, and the ongoing tension between decentralization and performance. Ultimately, this research highlights the pivotal role of interoperability in the next phase of blockchain adoption and outlines the key players and technologies driving this transition.

Suggested Citation

  • Lawrence, Alice, 2025. "Bridging Blockchains: The Rise of Cross-Chain Protocols and Interoperable Ecosystems," OSF Preprints bp7gx_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:bp7gx_v1
    DOI: 10.31219/osf.io/bp7gx_v1
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