1inch Network stands out as the largest decentralized exchange (DEX) aggregator on Ethereum, boasting over $4 million in total value locked and more than $189 million raised.

Recently, 1inch Network released a new white paper that aims to tackle the pressing challenges of cross-chain interoperability in the cryptocurrency sector.

The proposed 1inch Fusion Atomic Swap Protocol is designed to enable seamless cross-chain swaps across both layer-1 (L1) and layer-2 (L2) blockchain networks, effectively removing existing network boundaries.

This innovative protocol combines the security features of traditional atomic swaps with an intent-based approach, enhancing user experience and execution efficiency.

Co-founder Anton Bukov highlighted that the main advantage of the protocol lies in its frictionless user experience and advanced technology.

Bukov also emphasized that the protocol is built on three core principles: being fully trustless, allowing for protocol extensibility without a central authority, and utilizing Dutch auctions for optimal execution.

Despite these advancements, blockchain interoperability remains a significant challenge, as layer-1 blockchains operate as isolated systems that cannot communicate with each other.

Some projects, such as Polygon's AggLayer, are working towards a future without bridges by developing interoperability solutions that connect various blockchain networks.

The growing interest in cross-chain interoperability solutions has been underscored by Ethereum co-founder Vitalik Buterin's recent plans for Ethereum layer-2 interoperability.

However, Buterin has previously expressed concerns regarding the centralization vulnerabilities of cross-chain bridges, cautioning against potential 51% attacks.