One-Way Interoperability

The Need for Cross-Chain Communication

Blockchains that have no interoperability with other networks suffer from community isolation.

Leading to...

• Limited liquidity pathways

  • Crypto-to-crypto on and off ramps are non-existent

  • The UX of token access limits value

• Ecosystem lock

  • Holders can't cross-pollinate

  • DeFI utility is bounded

  • Tooling applicability is restricted

• Resilience

  • Single chain ecosystem is fragile

The problem with interoperability frameworks

Inter-blockchain communication frameworks and standards like Wormhole and Cosmos' IBC have:

Two-way, permissioned integration architecture:

1. Both communities need to agree on a protocol and standard

2. Both chains must update their source code to be able to interpret cross-chain messages

3. Chains become dependent on another's security

4. Is a consensus-breaking change that requires a governance action on both sides

5. Is complex to build due to race conditions caused by two block times

And often require...

Dedicated actors and trust assumptions like:

1. Third-party oracles

2. Cherry-picked validators

3. Off-chain relayers

4. Centralized guardians

5. Altruistic light client runners

Resulting in...

1. Extra gas fees

2. Limited throughput

3. Wrapped (synthetic) assets

4. Cost inefficiencies

Permissionless Interoperability

Canopy employs the first instance of 1-way - permissionless interoperability:

• ✅ only the Canopy chain's governance needs to agree on the new feature

• ✅ only the Canopy chain needs to update their source code

• ✅ interoperability features are composable and may be re-used by any Canopy chain

• ✅ security is still 100% self-reliant

• ✅ far less complex to build as no block-time race conditions

• ✅ trustless BFT agreement, no "trust minimization"

• ✅ no centralization, no off-chain actors

• ✅ no extra fees

• ✅ scalable, sovereign, without inefficiency

Canopy's 1-way interoperability means that multi-chain features can be built simply and without the permission of the 3rd party chain.

This means:

• Ecosystem-locked businesses and apps may be 'rescued' by the Canopy chain

• There's limitless ecosystem expansion

• Stablecoin on-ramp plugins are reusable across all Canopy chains, enabling instant liquidity

• Cross-chain collaboration is fostered without effort on any incumbent, enhancing overall adoption and usage of Canopy

• External chains can remain sovereign, while benefiting from Canopy's security and infrastructure

Want to know the "how"? Checkout How Does Canopy Work?