With the blockchain sector growing at an alarming rate, a growing number of industries have adopted it. This is why the blockchain industry is riddled with several blockchain projects offering solutions in a multitude of areas. However, the majority of active users on the blockchain are still crypto speculators even though there exist numerous blockchain solutions in several sectors such as insurance, legal, real estate, and retail, among others that are providing useful tools and services to users. Moreover, there are many blockchains in the market, with each operating on its own. At this stage, a lack of interoperability has led to low user adoption and stagnated the growth of the blockchain industry.
What is Blockchain Interoperability?
Blockchain interoperability is the ability for users to share information across several blockchain networks freely. For instance, in a fully interoperable system, if a user from one blockchain sends data to another user on another blockchain system, the receiver should be able to read and comprehend the data and respond to the data. Currently, this is not possible. However, several projects are spearheading the idea of creating an ecosystem that can enable different blockchains to interact with each other, minus the need of an intermediary. Moreover, through blockchain interoperability, the chances of mass adoption are significantly increased as opposed to running different blockchains.
The Cross-Chain Solution
The future success of blockchain technology will depend on how different blockchain systems integrate and interact. Currently, transactions are limited to one blockchain only with the principal means of transferring value between blockchains being crypto-exchanges. However, as history clearly shows, exchanges are vulnerable to hacks. Given the state of affairs, it’s not a shocker that cross-chain technology is gaining industry popularity. Cross-chain technology aims to solve this issue by attempting to create a bridge where blockchains can communicate with each other. It also removes the hefty process of registering different accounts for different blockchains to access services on each system. A key ingredient in the mass-adoption agenda.
Projects Spearheading Blockchain Interoperability
Blockchain networks are complex with varying levels of functionality, consensus models, and transaction schemes. Solving this problem requires cutting-edge technology that facilitates communication between each blockchain. There are many technologies in the arms-race towards introducing a blockchain interoperability solution. Some projects already have working products while others are still in development. Regardless, a majority of these projects are fascinating and at the forefront of the blockchain industry. Some of the projects working on providing interoperability solutions include Cosmos, Polkadot, Blocknet, Ark, Block Collider, among others.
If Blockchain interoperability is achieved, whether through multi-chain frameworks, open protocols, or a hybrid of both, will launch the blockchain industry into a new era. It will unlock a whole new world full of endless opportunities, possibilities, and numerous functionalities. Although looming scalability issues face the industry, some projects are already making an enormous impact. These ambitious and cutting-edge technologies are already giving a glimpse of what a blockchain interoperable future holds. Therefore, for blockchain technology and its applications to be adopted globally, interoperability remains a crucial factor.