Interoperability and cross-chain liquidity harvesting
Interoperability refers to the concept where blockchains can communicate with each other to allow smooth sharing of information. It is the ability to see and access information carried/stored in a different blockchain. That means that if the information is sent to another blockchain, a user on the other side can see it, read it, understand it, and react appropriately by using the minimum possible effort all through that process. Cross-chain technology seeks to create and enhance interoperability between blockchains and thus eliminate third parties' need to establish such connection.
Blockchain interoperability will ultimately help preserve the decentralized nature of blockchain technology. Third parties represent centralized systems which is the antithesis of decentralized blockchain technology. The elimination of intermediaries or third parties will allow the communication between decentralized blockchains and herald the return to fully decentralized systems.
Cross-chain implementation is basically represented by an asset transfer or asset swap, both essential parts of blockchain and items of research direction for PPIO. Cross-chains help eliminates the limitations of a single chain. Generally, cross-chain interactions are categorized into isomorphic cross-chains and heterogeneous cross-chains depending on the underlying technology.