In recent years, it has become clear that cross-layer and cross-chain interoperability is essential for the future of the interconnected blockchain ecosystem and the $100B DeFi industry. Composable intends to actualize this vision with its unique approach. test

A transition from the era of Blockchain 1.0 to Blockchain 3.0

The era of Blockchain 1.0 started with the inception of Bitcoin in 2009. Bitcoin laid the foundation of a trust-less, permissionless, and peer-to-peer decentralized protocol to transfer units of value between two parties without any intermediaries like banks or financial institutions.
Bitcoin is a single application built around the creation and transfer of value. It doesn't provide enough flexibility, such as building and launching applications that can run on the Bitcoin Blockchain. Vitalik Buterin and the team saw this limitation as an opportunity and launched Ethereum back in July 2015.
Ethereum commenced the era of Blockchain 2.0, bringing in the flexibility to run different applications by self-executing smart contracts. Ethereum is like a global transaction-based state machine with EVM (Ethereum Virtual Machine), which is the runtime environment for running and executing smart contracts.
However, there are two inherent problems with Ethereum and the overall blockchain 2.0 ecosystem; Scalability and lack of interoperability.
To solve the scalability issues surrounding the Ethereum ecosystem, developers started building Layer 2 scaling solutions that can accelerate the transaction throughput by more than 100x in some cases. Layer 2 is a collective term for solutions designed to help scale your application by handling transactions off of the Ethereum mainnet (Layer 1) while taking advantage of the robust decentralized security model of the mainnet.
Layer 2 (L2) scaling solutions sit on top of the mainnet (Layer 1) and are fully interoperable with Layer 1 by design. However, cross-chain interoperability (e.g BTC <-> ETH) is different, and various blockchain solutions such as Polkadot and Cosmos emerged to solve this problem in their own unique ways.

The Problem

The majority of these interoperability-focused solutions rely on bridges that allow different blockchains to communicate with each other and facilitate the exchange of assets. However, these Layer 2s and cross-chain interoperability solutions are still siloed among themselves.
Moving between L2 <-> L2 is pretty complicated and requires you to move to the L1 first. Moving your assets from L2 to L1 isn't straightforward either, as it takes up to a week at minimum. These long delays and complex processes pose some serious problems around user experience.
Composable is trying to solve both of these problems by building a cross-layer interoperable solution that will enable the future of the interconnected blockchain ecosystem, i.e., the Blockchain 3.0. Composable will bring together the siloed Ethereum L2 protocols and will enable a multi-layer ecosystem where you can quickly move between different Ethereum L2 protocols with near-instantaneous asset swaps.
In the following pages, we will discuss each of these solutions in detail and how Composable is trying to actualize its vision of the interconnected and composable multi-layer and multi-chain ecosystem.
Ready to dive in? Let's go.
Last modified 13d ago