There is no doubt that the cryptocurrencies or tokens are all fragmented, and all of them being within their own blockchain as well as not caring regard other coins out to be there. However, that is not the future pathway.
Currencies as we recognize them have transformed – a lot. We are currently living globally where there are millions upon millions of these currencies (referred to as Coins) upon the internet. There was a time when there was only a solitary API feed to offer live pricing on solitary coin, now you require a fully functional server database for the admittance of an enormous number of coins out there.
However, all of these coins are hugely fragmented, each doing its own thing within its own blockchain, and not helpful about the other coins out there. However, that’s not the way of the future, as disintegration often leads to standardization.
As mentioned earlier, the very concept of blockchain was considered to be a decentralized technology, so that it means individual blockchains networks are fundamentally closed, and it’s very tough for them to talk to each other.
Each blockchain project has different features that avert them from communicating, such features include types of transactions, hashing algorithms, as well as consensus models, among others.
Initially, permit us for reintroducing the concept of Blockchain. The Blockchain’s overall capacity has been very obvious to a lot people, as it can better aid in the business processes, offer transactional clear picture and even in curbing the operational rates, however, it’s being held back from mass embracing. So, what’s in the possession of blockchain from accepting universal acclaim?
While a lot of the problems and fears arise when talking about blockchain, we’ll be addressing one issue specifically which has to do with interoperability. Or rather, the lack of it.
The issue doesn’t stop there, unfortunately. The diverse networks and financial institutions occupied on diverse governance rules, regulatory controls, and blockchain types, further develop the issue. This led to in a multitude of independent blockchains that are operating simultaneously, but entirely unconnected to each other, which is avoiding this technology from reaching its fullest capacity.
That’s where the idea of blockchain interoperability comes into play. So what exactly is interoperability? It’s as the name suggests, it’s the possibility of all these fragmented blockchain systems to interconnect with each other. However, that’s not the whole picture, it also consents for the ability to share, see, and access the data in these fractured blockchains without the requirement for an intermediary – like what the stock arrangement utilizes with a centralized exchange.
What this indirectly refers is that if a blockchain project desires to add interoperability into its platform, its core intentions are to generate an ecosystem that permits diverse blockchains to communicate with each other with ease. This means that interoperability would include several performances as well as capacities such as: Incorporation with prevailing systems, initiate transactions on other networks, operate transactions with other chains, as well as other such capabilities.
This goes to demonstrate that just how crucial, as well as critical, blockchain interoperability really is. In a world where enterprises, be subject to on an even superior level of collaboration and interaction, interoperability is a function that’s very decisive in any software system. So, this brings us to just how much this technology is required. But where exactly?
Blockchain interoperability would be specifically desired in value chain industries, such as supply chain, trade finance, healthcare, aviation, and other such industries. One simple blockchain network would not be able to cut it and would basically be unable to deliver all the requirements for any given transaction. Hence the requirement for many networks and connecting these networks is what makes this system worthwhile.
When there is a lack of something, there’s usually an upward demand for it, the same is functional to the idea of interoperability. That’s why dozens of projects have been fashioned to address the lack of interoperability.
These projects came into the picture to try and connect the void between these siloed blockchains. The aim was modest, to facilitate interaction between networks and that the idea of a decentralized system is truly implemented.
There are many interesting projects such as Chainlink, Cosmos, Hybrix, Polkadot, and Wanchain. Other notable projects include Aion, Ark, ICON, Transledger, Cosmos and Overledger. The final game is to generate an ‘internet of blockchains’ – a network of blockchains that can easily converse with each other all in a decentralised manner.
So, it would seem that the adaptability of blockchains is centred around the onset of interoperability solutions. This may well in fact change how investors and industry’s opinion of the idea of blockchains and will be an imperative step in convincing networks that the uninterrupted exchange of data is beneficial to the entire market.
As time goes by and more work is put into the interoperability between blockchain protocols, we’ll witness more successful cross-blockchain projects. So, interoperability is the game-changer for the blockchain industry.