📄 5. Interoperability

Interoperability is a substantial part of the fast-changing world of blockchain technology. One the one hand, with the growing blockchain ecosystem, where multiple networks are introduced to serve distinct use cases. However, they need to have a perfectly working relationship with other networks to provide a special feature or service that is not present in other networks. While developing in such a manner, interoperability refers to “the ability of separate blockchain networks to facilitate the exchange of data, assets, or transactions, if desired”. In terms of modern blockchain ecosystems, interoperability is a key feature to reveal the benefits of decentralized technologies as users will not be faced with any limitations while using different networks.

The problem of interoperability is being resolved by the ANM Chain through a sound framework that is based on two primary mechanisms: Inter-Blockchain Communication and Cross-Chain Bridges. These mechanisms form a two-component whole of ensuring that the ANM Chain can interact with other blockchain networks effectively, providing users with a tool for handling their digital assets across several blockchain systems.

5.1 Inter-Blockchain Communication (IBC)

The Inter-Blockchain Communication protocol is one of the curial aspects of the ANM Chain’s interoperability. It is a secure and reliable communication protocol that can be used by various blockchain platforms to exchange information and assets. This is done on a level of inter-blockchain communications, which enables the user to transmit the data across different blockchain ledgers. With IBC, it is possible to transfer digital assets such as Bitcoin, Ethereum, or Solana between blockchains and not deal with the friction present in cross-chain transactions.

The power of IBC consists in an opportunity to guarantee instant and direct communication of two blockchains without involving third parties which are likely to create some delays. Security in terms of the IBC protocol also plays an essential role. All transfers are guaranteed to be done in the safest way, which will protect digital assets. Another benefit which is proven by the technical side of the IBC protocol is the possibility to transfer information between different blockchains in the shortest period without the need to spend great computational resources. In other words, strict rules and the overall mechanisms of the protocol guarantee low operational costs which is the fact attractive for a range of users and developers.

IBC Process:

5.2 Cross-Chain Bridges

As a complement to the IBC protocol, ANM Chain uses Cross-Chain Bridges. They are specialized tools for transferring cryptocurrencies and other digital units from one blockchain network to another. These bridges are decentralized intermediaries encouraging assets and information transfer across the two networks. Using decentralized methods of cryptography such as atomic swaps, New Cross chain bridge connects pairs of both chains for assets and information swapping. IBC is an example of Cross-Chain Bridges which often use smart contracts to facilitate the cross-network transfer of cryptocurrencies. Using cryptographic methods and smart contracts makes the process secure and transparent. This feature differs the use of bridges from the use of centralized exchanges. The idea of establishing a secure mechanism for assets transfer and verification seems to align with a concept of blockchain and its implementations.

Advanced cryptographic approaches are put in place to protect the transactions that are done via Cross-Chain Bridges. This ensures that both the integrity and the confidentiality of these transactions are maintained. The flexibility of Cross-Chain Bridges is also of benefit to end-users since they can use many blockchain networks. Accordingly, they can transfer their digital assets from one network to another, and in the process, these assets become more usable and accessible for them. For example, with Cross-Chain Bridges, a user of a cryptocurrency may need to transfer their tokens from Ethereum to Binance Smart Chain. They might also need to transfer their coins from Solana to Polkadot. All these transfers can be made possible using Cross-Chain Bridges. Moreover, the incorporation of both IBC and Cross-Chain Bridges makes it highly interoperable. As such, the solution avails several blockchain network features to the user. However, while this is the case, the chaining of these technologies brings about a versatile feature to the ANM Chain.