In the current decentralized finance (DeFi) ecosystem, cross-blockchain interoperability has been a topic of great concern. With the recent release of 1inch’s cross-chain innovation white paper, the platform proposes a future model consistent with Web3 and DeFi values, trying to solve many current problems.
The challenge of cross-chain friction
In the current DeFi market, limited interoperability between blockchain networks creates huge friction. Existing solutions tend to fall into two categories: centralized bridges that carry serious security risks, and decentralized approaches that often provide a poor user experience. Even some emerging intent-based methods, such as those described by Anoma, simplify liquidity procurement, but still require users to participate in off-chain order signing, which virtually increases the complexity of cross-chain exchanges.
In order for DeFi to reach new heights, we urgently need a more seamless, secure and user-friendly solution. This is exactly the problem 1inch is committed to solving.
1inch’s innovative solution: Fusion+
Fusion+ proposed by 1inch is an intent-based atomic cross-chain exchange protocol. It is a breakthrough hybrid solution that combines the best features of traditional atomic exchange and intent-based protocols. Atomic swap demonstrates its powerful capabilities in trustless transactions, but is not user-friendly enough, requiring users to generate secret values and actively participate in the exchange process.
In contrast, although intent-based protocols simplify liquidity, they still require users to participate in off-chain signatures, which increases friction. The team at 1inch designed a solution that combines the security of atomic swaps with the simplicity of an intent-based approach, making cross-chain swaps easier.
How Fusion+ works
So, what is unique about 1inch’s Fusion+ protocol? Here's how it works:
Dutch Auction: This mechanism ensures users get the best price as resolvers compete to fulfill orders on the best terms.
The role of the resolver: A resolver is a trusted, professional market maker that is incentivized to execute exchanges quickly and securely, ensuring that transactions can still be completed in the event that either party becomes unresponsive.
Trustless Swaps: By maintaining the core components of atomic swaps - hash locks and time locks, the protocol ensures trustless, operator-less swaps across multiple blockchains.
These features enable Fusion+ to not only enhance security, but also greatly improve the user experience, eliminating the need for users to manage all aspects of exchange, thus achieving true "plug and play".
Building the future of DeFi
1inch is solving a major bottleneck in DeFi applications: cross-chain friction. As more users and liquidity flow into DeFi, the need for a seamless cross-chain experience has never been greater. 1inch’s protocol not only meets this need, it takes it to the next level, making cross-chain exchanges as easy as transacting on a single blockchain.
The launch of this solution comes at a perfect time, as Ethereum founder Vitalik Buterin has repeatedly spoken about the challenges of achieving true decentralization in cross-chain systems and expressed concerns about censorship and security. 1inch’s Fusion+ addresses these issues head-on, providing a decentralized, secure and user-friendly solution that aligns with Vitalik’s vision for the future of blockchain interoperability.
1inch’s cross-chain innovation journey
1inch’s efforts to promote cross-chain functions did not start today. This white paper builds on intent-based protocols like the 1inch Limit Order Protocol and Fusion, and other existing technologies that are paving the way for a truly interoperable DeFi future. For users who have been paying attention to 1inch, this white paper marks an important milestone.
The future of DeFi starts now: For anyone deeply involved in the cryptocurrency space, one thing is crystal clear: cross-chain interoperability is critical for DeFi to truly become mainstream. According to 1inch’s vision, barriers between blockchains are about to become a thing of the past. Fusion+ is not just another incremental improvement, it is a paradigm shift that will bring new possibilities to traders, liquidity providers and developers.
As 1inch continues to push boundaries, this white paper represents not only a technical document, but also a vision for the future of decentralized finance. Whether you are a hardcore DeFi user or just starting to explore the possibilities of cross-chain exchange, this is a protocol worth paying attention to.