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arXiv · 2603.21797

Connecting Distributed Ledgers: Surveying Novel Interoperability Solutions in On-chain Finance

Hasret Ozan Sevim
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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.

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Hasret Ozan Sevim. 2026-03-23. Connecting Distributed Ledgers: Surveying Novel Interoperability Solutions in On-chain Finance. https://arxiv.org/abs/2603.21797

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