Follow Us

Interoperability in Blockchain: A need of the future

Share on facebook
Share on twitter
Share on linkedin

Share

blockchain
Share on facebook
Share on twitter
Share on linkedin
  • Interoperability facilitates smooth communication among different blockchain networks.
  • Projects can be placed on different chains with Multi-chain Interoperability and cross-chain interoperability is important for the flow of assets.
  • Interoperability is needed for blockchain technology to be widely accepted not only in cryptocurrency but also in other fields.

What is Blockchain Technology:

Blockchain, which is often used in reference to Cryptocurrency, is a database that electronically stores the information in a digital format. It maintains the record of transactions securely and in a decentralised way, the most vital feature is that there’s a guarantee that your record of data is secure without the need of a third party. Therefore, the level of trust is more. 

Blockchain basically holds all the information in the form of blocks and each particular block has a specific capacity to store the information and once it is filled, the blocks are closed and are linked to the previous block, which forms a chain of blocks, hence the name Blockchain. 

What is Blockchain Interoperability:

Blockchain Interoperability talks about the possibility that blockchain that are disparate can communicate with each other. Moreover, it is the ability of the various blockchain networks to see, share and access information with each other without needing any centralised exchange as an intermediary. The aim of the blockchain networks who want to implement interoperability is to facilitate smooth communication with one another. 

ALSO READ – UNDERSTANDING DAI AND STABLECOINS

What is the need of Blockchain Interoperability:

Blockchain Interoperability is needed to overcome the restrictions that blockchain protocols bring with themselves, to achieve higher scalability, higher security and faster block time.And to create an integrated system in the finance system, even if blockchain technology in used for the traditional finance system, blockchain interoperability would be needed, for example; if two banks use different blockchain networks for their transactions, it might be a complex procedure for the bank accounts of the two banks. For an instance: Blockchain networks like Polkadot, Cosmos and Harmony are offering interoperability solutions to other blockchain networks.  

Advantages of Blockchain Interoperability:

  • It increases the sharing ease and integration of data, hence increases the success of the Blockchain Technology
  • It will be useful for the upcoming projects, not only for cryptocurrency but also fields like healthcare etc.
  • Cross- chain transactions have become easier.
  • Transactions can take place among different tokens too.
  • Chances of frauds are very minimal, hence providing privacy and security.

Cross- Chain Interoperability:

The inability of communication of various blockchain technologies with one another is a matter of concern for people who want full benefits of the Blockchain technology, and Cross- chain technology solves these problems as it enables interoperability between blockchains and hence making it easy for them to communicate with each other and facilitate the flow of information. It allows communication without the need of any intermediary, this means that blockchains that share similar networks will have the ability to transfer the value with one another. 

Cross chain is a solution that allows transfer of assets and values between various blockchain platforms. Hence, it breaks the nature of these blockchains to exist separately, instead it creates an intertwined distributed system. 

The most prominent cross- chain projects are: Polkadot, cosmos, wanchain, Ramp De-fi, Mantra DAO, each of them focus on different aspects of Interoperability. To explain a few:

  • Cosmos

This is one of the best known interoperability projects, it is a decentralised network of parallel blockchains that are independent. It relies on InterBlockchain Communication(IBC) messaging protocol so that it can facilitate dialogue between exterior networks. A lot of fascinating projects have built themselves on Cosmos cross-chain network like the Binance chain, IOV, Sentinel Network etc. 

  • Wanchain

Wanchain is said to be the most advanced blockchain interoperability platform in the world. Wanchain is a project that supports ring-signatures based transactions and decentralised cross-chain functionality. On the network, developers can even write smart contracts, build dApps, issue tokens including NFTs , etc 

Multi Chain Interoperability:

Multi chain as the name suggests, refers to many different chains. That means besides the actual chain, any particular project can be placed on other chains like Ethereum, Binance smart chain, Avalanche, Polkadot, Solana etc. Though for the flow of assets, it will need the cross-chain technology which allows transfer of assets and values on the independent chains in the market.

Interoperability is something that the blockchain network needs, to gain trust and be widely accepted in different fields. And moreover in today’s world, every company and enterprise are depending upon collaborations to work more efficiently and to leave a mark. And interoperability is crucial because any specific blockchain should communicate and be connected with the others to facilitate and let the people make use of the technology to its full potential. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00