Group 1: Challenges of Blockchain Interoperability - Early blockchain networks operate independently, creating natural barriers such as data isolation, asset freezing, and ecosystem fragmentation [1] - Bitcoin and Ethereum networks cannot read or verify each other's transaction states, leading to user assets being locked within a single ecosystem [1] Group 2: Cross-Chain Technology Overview - Cross-chain technology aims to securely and efficiently enable information and value transfer between different blockchains, with various mainstream technical approaches [3] - Notary schemes involve trusted third parties to monitor source chain events and trigger actions on target chains, though they rely heavily on third-party trust [3] - Hash Time-Locked Contracts (HTLC) facilitate trustless atomic swaps, ensuring either simultaneous asset exchange or a refund, but are limited in supporting complex interactions [3] - Relay chains and sidechains, like those in Polkadot and Cosmos, create dedicated chains to validate and relay messages from other chains [3] Group 3: Unlocking Value Beyond Asset Transfer - Cross-chain technology enables transformations beyond simple asset transfers, enhancing DeFi capabilities and allowing users to leverage assets across different chains for lending and liquidity mining [4] - NFTs and metaverse assets can be freely traded and used across platforms, unlocking their true value [4] - DApps can utilize resources from multiple chains, such as executing high-frequency trades on low-fee chains while securely storing data on others [4] - Shared infrastructure and collaboration between chains can reduce development costs and enhance the robustness of the entire blockchain ecosystem [4] Group 4: Future Challenges and Developments - Key challenges for cross-chain technology include security, as cross-chain bridges are prime targets for hackers, necessitating improvements in cryptographic proofs and auditing practices [6] - The lack of unified standards complicates interoperability, with industry direction leaning towards the promotion of universal standards like the Inter-Blockchain Communication (IBC) protocol [6] - User experience improvements are needed to address cumbersome processes, unpredictable fees, and long wait times, which hinder widespread adoption [7] - The evolution of protocols like Polygon and Wormhole, along with new architectures such as LayerZero, indicates a shift towards safer, more efficient, and user-friendly cross-chain technologies [7] - The transition from isolated blockchains to an interconnected network of blockchains is an unstoppable trend, marking a paradigm shift in blockchain infrastructure [7]