Connecting Distributed Ledgers: Surveying Novel Interoperability Solutions in On-chain Finance
Abstract
This paper emphasizes the critical role of interoperability in enabling efficient and secure communication for the fragmented distributed ledger ecosystem, particularly within on-chain finance. The purpose of this study is to streamline and accelerate empirical research on the intersection of cross-chain interoperability solutions and their impact within on-chain finance. The analysis examines the relationship between financial use and interoperability while comparing the properties of novel cross-chain interoperability protocols (LayerZero, Wormhole, Connext, Chainlink Cross-Chain Interoperability Protocol, Circle Cross-chain Transfer Protocol, Hop Protocol, Across, Polkadot, and Cosmos), focusing on their design, mechanisms, consensus, and limitations. To encourage further empirical study, the paper proposes a set of network metrics and sample statistical models and provides a framework for evaluating the performance and financial implications of interoperability solutions.
Cite
@article{arxiv.2603.21797,
title = {Connecting Distributed Ledgers: Surveying Novel Interoperability Solutions in On-chain Finance},
author = {Hasret Ozan Sevim},
journal= {arXiv preprint arXiv:2603.21797},
year = {2026}
}
Comments
26 pages; conditionally accepted paper (not published yet); Journal: Financial Innovation; Journal URL: https://link.springer.com/journal/40854