7.1 Next-Gen Interoperability with Cross-Subnet Tech

Cross-subnet composable smart contracts represent a significant advancement in blockchain technology, enabling smart contracts to interact seamlessly across different subnets without the need for traditional bridging mechanisms. This innovation addresses security vulnerabilities associated with bridges and enhances interoperability across various blockchain networks.

Eliminating Security Vulnerabilities

Traditional cross-chain interactions often rely on bridges, which can introduce additional trust assumptions and potential security risks. For instance, the Ronin bridge hack in March 2022 resulted in a loss of $650 million due to compromised validator keys, highlighting the inherent vulnerabilities of such systems.

By enabling direct smart contract execution across subnets without bridges, these vulnerabilities are mitigated, leading to a more secure and robust blockchain ecosystem.

Mechanisms Ensuring Composability and Secure Interoperability Achieving cross-subnet composability requires robust mechanisms to ensure secure interoperability:

Atomic Cross-Subnet Transactions: Implementing atomic transactions ensures that operations across subnets are completed entirely or not at all, maintaining consistency and preventing partial execution that could lead to discrepancies.

Standardized Communication Protocols: Developing standardized protocols facilitates seamless interaction between smart contracts on different subnets, ensuring that data and value transfer securely and efficiently. Decentralized Relayers: Utilizing decentralized relayer networks can transmit messages between subnets without relying on centralized intermediaries, reducing single points of failure and enhancing security.

Use Cases for Cross-Subnet Interactions

The ability for smart contracts to operate across subnets unlocks numerous possibilities across various sectors:

Decentralized Finance (DeFi): Cross-subnet composability allows DeFi applications to access liquidity and assets from multiple subnets, enhancing capital efficiency and enabling more complex financial instruments. For example, a lending platform on one subnet could seamlessly interact with a decentralized exchange on another to optimize loan collateralization.

Artificial Intelligence (AI): Integrating AI services across subnets enables the development of decentralized AI marketplaces, where data providers, model trainers, and end-users can collaborate without intermediaries. This setup promotes data privacy and equitable access to AI resources.

Supply Chain Management: Cross-subnet smart contracts can enhance supply chain transparency by allowing different stakeholders—such as manufacturers, suppliers, and retailers—to interact on a unified platform. This interoperability ensures real-time tracking of goods, authenticity verification, and efficient dispute resolution.

Cross-subnet composable smart contracts eliminate the need for bridges, thereby reducing associated security risks and enabling secure interoperability. This advancement facilitates innovative applications in DeFi, AI, supply chain management, and beyond, paving the way for a more interconnected and secure blockchain ecosystem.