The Web3 space is in its infancy, relatively new to many users, and very complex. It is the next stage of the Internet will be known for being decentralized, giving control directly to the users, and interacting with a user interface. 

One notable feature of Web3 is its use of blockchain technology. Blockchain is a digital ledger or database used to record, store, and share information over a network in a transparent, secure, and immutable way. One popular use of blockchain technology is cryptocurrency. 

Now, different types of blockchain technology networks exist, and you could find them difficult to navigate  if:

• You are a new user, 
• They get upgraded or  
• You operate with more than one type of blockchain network. 

In cryptocurrency, you can have more than one crypto wallet and many seed phrases to store properly and switch between different blockchain networks. This can be a problem, which is where Chain Abstraction comes in.

This article will break down chain abstraction in a way you will understand. We will discuss how it works, its benefits and challenges, key players, and its future. Let’s go!

What is Chain Abstraction?

Here is a simple illustration to help you understand ‘Chain Abstraction.’

Illustration: You have four bank accounts across four different banks. Bank A, Bank B, Bank C, and Bank D. Each bank has its mobile app. You have a different password for each of them. You must log into each bank’s app individually whenever you want to check your balance or make a transfer. This setup is cumbersome and slow because you interact with each system (bank app) directly and separately. An app that merges all your bank mobile apps into one is now introduced. This single app allows you to interact with all your bank accounts in one place. The app simplifies the complexity by acting as a bridge, You don’t need to worry about the technical details of each bank’s system. The merging of your 4 bank apps into one is known as Chain Abstraction.

In a blockchain context, Chain abstraction is the merger of multiple blockchains to make it easier for you to use even when you do not understand its complexities. 

There are over 1,000 blockchains today, each with its respective aspects, such as wallets, tokens, transaction rules, ecosystems, coding languages, network selection, bridges, and protocols. When used as a unified system, these aspects are merged for a more seamless experience. 

Some blockchain networks have already adopted the idea of chain abstraction, including Near Protocol, Polkadot, Cosmos, Ethereum (via Layer 2 solutions like Optimism and Arbitrum), Avalanche, and Polygon. 

How It Works

When we talk about how chain abstraction works, we show the mechanisms and processes that allow multiple blockchains to function as a unified system. 

Key elements include smart contracts and interoperability protocols, middleware, unified wallets, and user interfaces. 

1. Smart contracts and Interoperability protocols

Smart contracts act as bridges to facilitate communication and asset transfers between blockchains. 

1. Interoperability protocols are the rules and standards for cross-chain communication, ensuring seamless data exchange and asset transfers. Examples include IBC (Inter-Blockchain Communication) used within the Cosmos ecosystem, LayerZero, and Wormhole. 
2. Middleware and APIs

Middleware is a software layer that handles the complexities of interacting with multiple chains translating requests into specific blockchain protocols. APIs provide a standardized way for developers to interact with middleware and blockchain networks. 

3. Unified wallets and UI

Unified wallets and UI allow you to manage assets across multiple blockchains from a single interface, simplifying your experience. Chain abstraction solutions often provide intuitive interfaces that hide the underlying complexity of blockchain technology, making it more accessible to people.

Key Players in Chain Abstraction

These are the blockchains that are at the forefront of implementing chain abstraction.

1. Near Protocol

Near protocol is the most prominent blockchain pushing for the adoption of chain abstraction. It offers a rainbow bridge for seamless asset and data transfer between Ethereum and NEAR, simplifies developer access to blockchain applications, and creates a user-centric design for efficient blockchain technology.

2. Polkadot

Polkadot pushes forward the interoperability and the unification of blockchains. It consists of parachains, cross-chain communication, and interoperability, focusing on simplifying blockchain interactions, but that’s not all. Another effect is the regression of ecosystem silos, which advances chain abstraction.

3. Cosmos

Cosmos promotes chain abstraction by focusing on interoperability and simplifying communication. It uses the Inter-Blockchain Communication protocol, works as a hub-and-zone architecture, and has a developer-friendly framework, which makes blockchain interactions seamless and efficient.

4. Ethereum’s Layer 2 

Ethereum’s Layer 2 solutions are scalable, cheap, and interoperable as they enable faster and cheaper transactions that integrate multiple blockchains to form a single ecosystem. You benefit from reduced fees and faster execution, enhancing blockchain usability and connectivity.

Benefits of Chain Abstraction

• Simplified User Experience: You can navigate with multiple blockchains seamlessly without worrying about how they work.
• Interoperability Chain abstraction allows you to transfer data and assets smoothly across different blockchain ecosystems.
• Cost Efficiency: It helps you save money by automatically choosing the most cost-effective blockchain for transactions.
• Faster Transactions: Your transactions can be processed more quickly by optimizing for speed with faster chains or Layer 2 solutions.
• Single Wallet: You can use one wallet to interact with all blockchains.
• Accessibility: It lowers the technical barriers, making blockchain technology easier for you to use.
• Developer Convenience: If you’re a developer, it simplifies the process of building applications that work across multiple blockchains.
• Future-Proofing: It makes you ready to adapt to future innovations and upgrades in blockchain technology.

Challenges of Chain Abstraction

Chain abstraction comes with several challenges you should know about. First, connecting multiple blockchains increases security risks, as bridges and protocols can be vulnerable to hacks. Scalability is another issue since handling the large flow of data across blockchains can slow things down if the system is not strong enough. It’s also tricky to build and maintain these systems, and the cost of development can be high. Regulations are still unclear, and chain abstraction could make it easier to bypass certain rules, adding more complexity. Different blockchains have unique designs, so creating universal standards for them to work together is not easy. You might also worry about trusting a system you don’t fully understand. Lastly, it might come with trade-offs like reduced efficiency or reliance on centralized tools.

The Future of Chain Abstraction

When chain abstraction becomes well-established in the future, these are what to expect:

• Millions of users will join the blockchain space
• Technical barriers that make cryptocurrency and decentralized applications difficult to navigate will be removed.
• There will be a seamless integration of blockchains in the background, similar to the Internet.
• Developers will be able to create cross-chain decentralized applications (dApps) integrating features from multiple blockchains.
• Challenges like security, scalability, and regulatory issues will be resolved.

• Chain abstraction could revolutionize blockchain technology interaction, making it as simple and common as the internet.

Conclusion

Chain abstraction, though in its childhood, is a tool that will revolutionize the blockchain space as we know it. When different blockchains are merged into one, the technicalities around it will be reduced, making it more accessible, user-friendly, and efficient for you the end-user. Despite the current challenges it faces today such as security, scalability, and regulatory concerns, the benefits like cost savings, faster transactions, and enhanced interoperability make it something to look forward to. With its early adopters like Near Protocol, Polkadot, and Cosmos among others, we can say it is only a matter of time before other blockchains adopt and harness its potential.