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The Chain Abstraction Thesis | Season 7 Episode 3 | Sam & Illia
Bell Curve
Blockchain Trust Zones and Interoperability Challenges
Blockchain technology requires complex consensus mechanisms for secure money transfers within different trust zones. Interconnecting trust zones, such as in Cosmos with Inter-Blockchain Communication (IBC), involves significant challenges due to security concerns and the risk of theft during large transactions. While Solana operates as a single blockchain with effective operations, Ethereum functions as a single trust zone while developing separate roll-up ecosystems with limited interoperability. In these ecosystems, there is a tendency to restrict the movement of funds out of the ecosystem to retain value within. Thus, blockchain networks face challenges in balancing security, interoperability, and ecosystem expansion to facilitate efficient fund transfers across different trust zones.
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