Key points

  • Blockchain abstraction is about making blockchain applications and services easier to use by removing complexity and hiding technical processes from users.

  • The blockchain abstraction can make applications more attractive to users and help developers create efficient DApps that enable cross-chain interoperability.

  • Challenges to blockchain abstraction include centralization risks, security risks, and potential interoperability issues.

Introduction

Blockchain can seem confusing and complex, especially for beginners. In this article, we'll look at what the blockchain abstraction is and how it works, as well as talk about its advantages, disadvantages, and common misconceptions.  

What is a blockchain abstraction?

Blockchain Abstraction is NEAR's idea of ​​making blockchain easier to work with. Its essence is that users are not required to understand the specific blockchain they are interacting with, or even realize that they are using a blockchain.

How does the blockchain abstraction work?

Efficiency

Imagine if you could only send messages from an iPhone to another iPhone, but not to Android phones. This is ineffective and impractical. Just like phone owners, blockchain users should be able to interact with decentralized applications (DApps) across different blockchains without unnecessary barriers.

The purpose of blockchain abstraction is to remove or hide the complexities of the blockchain so that users can focus on the features and benefits of the DApp. For example, if Sarah wants to use a new DApp called XYZ, she doesn't have to think about what blockchain it's built on. Sarah is a regular user and just wants the app to work well and do its job.

Likewise, millions of people use the Internet every day, but few understand how it works. As long as everything works as intended, users don't need to know the technical details.

Transactions

Imagine a DApp that makes it easy to transact across multiple networks and navigate across multiple services. For example, Sarah opens the XYZ app on her phone, orders coffee, and sees a discount at her favorite clothing store. She buys a pair of shoes and receives a reward, which is stored in the form of non-fungible tokens (NFT) on Ethereum. Sarah later notices a special offer tied to the reward and buys tickets to the event, which are also NFTs but on BNB Smart Chain (BSC).

All of these transactions can happen in one app, so Sarah doesn't have to manage multiple wallets, switch networks, or handle transaction fees directly. The blockchain abstraction strives to achieve exactly this cross-chain interaction.

Benefits of Blockchain Abstraction

Liquidity defragmentation

Liquidity is often isolated in certain blockchains, making it more difficult for users and developers to use and access. The blockchain abstraction solves this problem by providing access to liquidity across different blockchains.

For example, John wants to lend his tokens to earn interest. If liquidity is isolated, he will have to find a platform on the specific blockchain where his tokens are located. However, using the blockchain abstraction, John can lend his tokens on a platform that integrates liquidity from multiple blockchains. Such a platform will attract more users, and John will receive more favorable interest rates.

Simplified development

The blockchain abstraction offers flexibility in creating DApps since developers do not have to be constrained by the confines of a specific blockchain. 

A developer can use Ethereum for smart contract and Polygon capabilities to reduce costs. For example, Decentraland uses the Polygon network to allow users to obtain, buy, sell and trade items for their avatars without transaction fees. At the same time, Decentraland uses several functions to completely eliminate commissions. Transactions at Polygon have small fees, but they are not completely free.

Blockchain Abstraction Issues

Risk of centralization

The blockchain abstraction can be implemented by creating an interface that allows users to conveniently interact with all types of blockchain applications from a single service. However, such an interface can become a single point of failure.

Security risks

Each blockchain has its own security protocols. If you combine them into a single interface, it will be difficult to comply with all security measures. In addition, if the interface to the blockchain abstraction is poorly implemented, risks may arise for individual blockchains.

Compatibility issues

Another challenge is ensuring interoperability between blockchains. Blockchains have unique consensus algorithms and smart contract languages, so it is difficult to create a single interface that works flawlessly across all networks. For example, the Ethereum smart contract is not directly compatible with Solana due to differences in programming language and underlying technology.

Common Misconceptions About Blockchain Abstraction

Blockchain Abstraction Eliminates Differences in Blockchains

The blockchain abstraction simplifies cross-chain interactions, but the unique features of each blockchain do not change. It facilitates and automates technical processes, rather than changing the blockchain infrastructure.

The blockchain abstraction concerns only cross-chain transactions

Conducting transactions between blockchains is not the only task of the blockchain abstraction. It also makes it easier to use DApps, deploy smart contracts, and extract data from blockchains.

Finally

Blockchain abstraction facilitates interactions between blockchain networks and provides benefits such as liquidity defragmentation and simplified development. However, this concept has centralization risks, security risks and potential compatibility difficulties. Yet the abstraction of blockchain can lead to the creation of interoperable and usable blockchain ecosystems.

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