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Cross-Chain Smart Contracts: What They Are and How They’re Validated

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In the digital age we live in, more and more everyday processes are operating online. Even online contracts have become common. You may feel out of the loop regarding these developing technologies, but we’re here to help. 

Today, we’ll explain what cross-chain smart contracts are. Read on to learn about how they work and what steps are taken to validate them. 

We’ll also briefly discuss flexible staking and how it’s used in these agreements. 

What Are Smart Contracts?

Before we cover the cross-chain aspect, we need to explain smart contracts. You can skip down to the next heading if you already know about these processes. Otherwise, let’s get started.

A smart contract is a program that runs on a blockchain and is used to automate agreements. They follow an “if..then…” system. Once the parties meet the coded terms and conditions, computers execute the action, or the “then.” 

Participants of the contract can include as many conditions as they want. Once you make these decisions, you hire a programmer to create the code or use online template programs. 

When coming up with your contract, it’s also crucial to consider any possible exceptions to the stipulations. Additionally, make sure to discuss a process for resolving disputes. 

These forms of agreements are becoming increasingly popular due to its flexibility, allowing you to unstake your assets whenever you want.  

Multi-Chain Ecosystem

Initially, these contracts only existed on one blockchain. For example, Ethereum ones only existed on that specific network. However, people increasingly saw a need for multi-chain agreements. 

Creating this multi-chain ecosystem presented some challenges, though. It’s difficult to have a unified contract when every code on a new blockchain requires a new copy of the agreement. Each one used its own processes like account balance tracking, making the agreement differ from chain to chain. 

Accessing your preferred network wouldn’t necessarily give you all the accurate information. Thus, it required users to learn how to use multiple networks. 

What Are Cross-Chain Smart Contracts?

Cross-chain smart contracts were created to help solve these issues. These decentralised agreements include multiple contracts across several blockchains. The process allows a modularised version of the contract’s components. 

Each one can perform its own tasks while still staying synced with the rest of the contract. This way, users find a standardised experience across each blockchain. Additionally, it allows you to use specific networks for their benefits, such as a privacy-focused chain for identifying users and a chain resistant to censorship for tracking ownership. 

How They’re Validated

Smart contracts require each participant to agree on each change or transaction. The block is only created after an agreement is made. This process helps confirm the validity. 

For cross-chain contracts, each person across all involved networks must view any changes, agree to them, and add them to their blocks before the agreement is valid. Every time a step is executed, you receive a copy of it. 

The Ethereum community was one of the first to employ these contracts. To validate these agreements, it uses fraud and validity proofs on the main chain:

  • Fraud Proof: When a user discovers an invalid block, they can relay a fraud proof to the network to warn others. 
  • Validity Proof: Smart contracts only update a blockchain once a change is verified. 


Now that you understand what cross-chain smart contracts are and how they work, you can use them to your advantage. If you plan to use blockchains, they’re a crucial part of deals with other users. 

Blockchain is here to stay, so you need to keep up with developing technologies. Use them on your next asset trade to simplify things and keep yourself protected. 

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