- 1Inch has released a whitepaper addressing cross-chain interoperability issues
- The whitepaper described a new project known as the 1Inch Fusion Atomic Swap Protocol
- The protocol innovatively uses conventional atomic swaps to provide a frictionless user experience
DeFi protocol 1Inch has released a whitepaper detailing the 1Inch Fusion Atomic Swap Protocol, a project that addresses cross-chain interoperability issues. The whitepaper describes how to employ conventional atomic swaps to move funds across different networks without compromising blockchain’s trustlessness and decentralization. 1Inch Fusion Atomic Swap Protocol comes at a time when projects are cropping up to address the siloed nature of blockchains, a situation that has forced blockchain users to use less secure options like bridges to move assets across blockchains.
Current Solutions Aren’t Ideal
According to the DeFi network, current cross-chain solutions are largely centralized, “introducing significant security and censorship risks.” It added that the available decentralized options have a poor user experience hindering their adoption.
The new 1Inch project enables the movement of funds across both layer one and layer 2 networks. Apart from leveraging traditional atomic swaps, the project employs an intent-based approach coupled with Dutch actions and 1Inch resolvers who act as “trusted professional market makers that automate the bulk of the work.”
According to 1Inch, Dutch auctions handle the swap rates while resolvers execute the swaps. 1Inch believes that the approach makes it possible to move funds between different chains as if trading on a single blockchain.
According to the whitepaper, moving funds across chains involves four steps. The first phase involves a user issueing an order and the 1Inch Fusion Atomic Swap protocol sharing the order with resolvers.
There’s an Option to Recover Funds
The second and third phases involve depositing and withdrawing funds while the fourth part, which is optional, includes a way to recover funds “before the timelock expires.”
The whitepaper comes as industry veterans like Vitalik Buterin are pressuring DeFi projects to become more decentralized. It also comes when entities like Mastercard are working to link DeFi and credit cards.
With 1Inch inventing a way to easily and securely move funds between blockchains, it’s to be seen whether it’ll help increase the amount of funds locked in DeFi protocols.
