The importance of being cross-chain for APYSwap
What is cross-chain communication?
Cross-chain communication refers to the interlink and exchanges of data and other pieces of information on-chain, between blockchains. For example, when the Ethereum blockchain communicates with the Binance Smart Chain if you wanted to move assets.
In a centralized world with a traditional financial system, when you travel internationally, you can use your credit card that allows foreign transactions to purchase local merchandise and services without needing to worry about what the local currency is, this is known as interoperability. The same idea applies to the world of blockchain as well in the form of cross-chain communication. A more simple example would be that users of one email service (such as Hotmail) can easily interact with those who use a different email service (Gmail for example). Cross-chain is essentially interoperability in the DeFi space, where 2 or more different blockchain systems based on different protocol layers can communicate with each other.