# CrossDeFi: A Novel Cross-Chain Communication Protocol
## 1 Introduction  
Blockchain technology serves as a decentralized infrastructure, functioning as a distributed digital ledger that aggregates cryptographically signed transactions into blocks [1]. Often termed distributed ledger technology (DLT), it ensures transparency and security in managing digital assets through decentralization and encryption [2]. This technology enables secure peer-to-peer transactions without intermediaries [3]. Key features such as decentralization, immutability, transparency, and auditability enhance the security and tamper-resistance of transactions [4]. Smart contracts, which are scripts stored on the blockchain and automatically enforced based on predefined terms, facilitate decentralized verification and real-time access for all users within the blockchain network [5]. These contracts have elevated the blockchain from a mere ledger to a comprehensive computing platform capable of automating relationships between stakeholders through encoded logic and behavior [6]. The immutable nature of blockchains ensures that once transactions are recorded, they cannot be altered [7]. Recent advancements in blockchain technology, particularly through smart contracts, have enabled decentralized mechanisms for fulfilling contracts across various markets [8]. The financial sector, an early adopter of blockchain technology, has showcased its potential to revolutionize traditional financial systems that often suffer from inefficiencies, high costs, and delays due to intermediaries [9]. Blockchain technology has transformed financial processes, introducing new possibilities and enhancing trust and security by reducing reliance on third-party verification through consensus-based methods [10]. Additionally, the blockchain has significantly improved transparency, security, and cost-effectiveness in the financial sector [11]. By leveraging characteristics like decentralization, immutability, and transparency, financial institutions can streamline their operations, reduce costs,and maintain transaction integrity [12]. Applications of the blockchain in cross-border payments, supply chain finance, equity financing, securities issuance, and insurance have demonstrated its versatility and effectiveness in various financial contexts [12]. In the banking industry, blockchain technology promises to transform everyday processes by making them more transparent, secure, and efficient [13]. Commercial banks are actively exploring and implementing blockchain to improve their centralized systems and enhance overall operations [14]. Blockchain-based securities trading exemplifies how the technology can foster trust and eliminate the need for third-party verification through consensus mechanisms [15]. Utilizing the blockchain, financial institutions can ensure the integrity of sustainable financial practices and promote trust among stakeholders. The immutable and traceable nature of blockchain data enhances the reliability and trustworthiness of financial processes [16]. Building on these advancements, decentralized finance (DeFi) has emerged as a groundbreaking development within blockchain technology, offering unprecedented access to financial services like lending, borrowing, and trading without traditional intermediaries [17; 18]. DeFi creates a unified ecosystem where multiple protocols interact seamlessly on a blockchain infrastructure. However, the independence of different blockchain systems can undermine the core principle of decentralization and pose challenges to widespread adoption across various industries [19]. Despite continuous innovation, the DeFi ecosystem faces significant challenges, particularly with interoperability and transaction finality across diverse blockchain networks. Interoperability requires seamless interactions across different blockchains, enabling smooth data and asset transfers without third-party involvement [20; 21].