Blockchain technology offers a wide array of benefits and promising results, making it adaptable across all industries. Till now, one factor that stops the mass adoption of blockchain is interoperability. Pioneering blockchain interoperability will show substantial improvement in the adoption of the technology.
Various organizations and institutions have to store massive information and support data transfer from anywhere possible. Thus, blockchain interoperability or “inter-blockchain communication” is a vital requirement. Otherwise, there will be a disconnection from real-world applications if the technology isn’t upgraded. Until now, AI and the IoT have reached the level of interoperability.
Communication in-real time should be there to improve business operations. Wider technology adoption will pave the path for more research and development initiatives. As per the reports by WEF, interoperability isn’t only an issue in terms of technology but also affects governance and data ownership.
In the blog, we will understand the meaning of what is blockchain and how can it affect interoperability, its advantages, and its challenges. Further, will know more about the ongoing projects on blockchain interoperability.
What is Blockchain Interoperability
We require communication at the workplace for better operation. Similarly, there is a requirement for communication between blockchain protocols to share information.
Imagine you have a Yahoo email account, and to send information to a Gmail account, you are required to create another Gmail account. This is what happens if there is no interoperability in place. With blockchain and interoperability, an artist would be able to tokenize an NFT by a dApp and then receive payment in any crypto.
The layer one blockchain protocol has the problem of blockchain interoperability. There are arrays of operations such as recording, transactions, and storing data. However, the automation process lags if interoperability in the blockchain isn’t there. The security and all other factors should be reliable. At present, centralized systems are better at providing end-to-end solutions.
Automation has always been important, and more companies are looking forward to it. AI has already made the automation process easier. Therefore, blockchain application developers should prioritize interoperability, which is crucial to make the individual system work together uninterrupted.
What is Cross-Chain Blockchain
The term is often to be heard when discussing interoperability in blockchains. Cross-chain is the communication between two independent blockchains. The implementation is necessary for asset transfer. The communication between the networks can be divided into two types — isomorphic and heterogeneous.
Isomeric chains are those which have similar consensus mechanisms, network topology, etc. In contrast, the cross-chain interoperability in the heterogenous mechanism is when the consensus mechanisms are different. Suppose a