Interoperability in Multi-Chain Systems

Interoperability is crucial for multi-chain systems, as the price for easy scalability is fragmentation. However, this interoperability is equally important to all blockchain systems. Even though more dApps are based on the same chain in single-chain systems, many of them require interaction with other chains for liquidity or governance. Therefore, coming up with secure and efficient interoperability solutions is crucial for the entire blockchain space.

Avalanche, as a multi-chain system, provides flexibility on the execution and application layer but also offers a standardized messaging protocol. The necessary cryptographic algorithms are implemented in AvalancheGo, enabling cross-Subnet communication out of the box, even when the application and execution layers of the chains may be completely different. The VMs can utilize these modules to sign and verify messages, making interoperability between Subnets much easier than between unrelated chains from different networks.