Crypto networks usually exist in silos. They operate as separate, individual entities. As such, the features and benefits of one network can seldom be utilised by another. Moreover, the crypto assets of one network are generally not interoperable with other networks. This walled environment limits the possibilities and utility of the cryptosphere.
However, thanks to the development of several interoperability protocols, we could be moving from this siloed setup to a large umbrella network called a supernet. This could greatly improve the functionality of digital assets and enhance user experiences. But what is a supernet and how does it work? Tag along to find out.
What is a crypto supernet?
Supernets are also known as metanets. They enable interoperability and cross-chain communication between crypto networks, without the need for any centralised authority. Therefore, instead of several different walled environments, we have one unified ecosystem. The benefits? Since every network can harness the features and benefits of other networks, a supernet should offer better transaction speeds and security. Moreover, it can also lead to the development of new protocols that combine the utility of the various networks on the supernet. Finally, users of one network will be able to access the features and benefits of the other networks, thus greatly increasing the overall utility of the ecosystem.
How do crypto supernets work?
Supernets will make use of several interoperability systems to create this unified ecosystem. Some of these systems and technologies include atomic swaps, cross-chain communication protocols, and sidechains. Atomic swaps are considered the future of crypto exchanges. They were developed in 2017 by Charlie Lee, the founder of Litecoin (LTC). At that time, Lee took to Twitter to announce that he had successfully swapped 10 LTC for 0.1137 BTC, without the need for a crypto exchange.
Supernets also leverage cross-chain communication protocols such as Polkadot and Cosmos to enable interactions between the various networks of a supernet. Not only do these protocols facilitate the transfer of data and assets between different networks, but they also allow developers to harness the utility of the various networks to create new and innovative decentralised services and apps.
Finally, we have sidechains. These protocols help improve the scalability of blockchain networks. Each sidechain is an independent blockchain that stems from the main ‘parent’ blockchain but runs parallelly to it. The sidechain can have its own nodes and even run a different consensus mechanism than the main chain. However, in most cases, the two chains are interconnected through a two-way peg that allows for the transfer of assets between the parent blockchain and its sidechain.
All these systems, put together, provide the interoperability, cross-chain communication and asset-swapping capabilities required to create a supernet. Moreover, these technologies will only get better with time, thereby furthering the plausibility of crypto supernets. In April last year, the Ethereum sidechain, Polygon, introduced Supernets, which are scalable blockchain components that aim to ignite mass adoption of Polygon and Web3. Each of these Supernets is interlinked with each other, allowing them to exchange value and information with other Supernets and the Ethereum mainnet. This helps create a “gateway to multi-chain Ethereum.”
Conclusion
Interoperability is the future of blockchain technology. As such, supernets could well be the way forward for crypto networks. They will help enable the next generation of digital assets and web3 user experiences. And while supernets are still only in their infancy, progress should speed up in the coming years, especially with the rapid developments within the crypto and blockchain spaces.
