Why interoperability is key to mass adoption of blockchain technology
Interoperability allows blockchain networks and protocols to communicate with each other, making it easier for everyday users to use blockchain technology.
Analysis
Each year we see new blockchain networks develop to tackle specific niches within certain industries, with each blockchain having specialized functions depending on its purpose. For example, Layer 2 scaling solutions like Polygon are designed to have ultra-low transaction fees and fast settlement times.
The increase in the number of new blockchain networks is also a result of the recognition that there is no perfect solution that will be able to meet all the needs associated with blockchain technology at the same time. Therefore, as more and more organizations become aware of this burgeoning technology and its capabilities, the interconnection of these unique blockchains becomes necessary.
What is interoperability?Blockchain interoperability refers to a wide variety of methods that allow many blockchains to communicate, share digital assets and data, and work together more efficiently. This allows one blockchain network to share its economic activity with another. For example, interoperability allows data and assets to be transmitted across different blockchain networks through decentralized cross-chain bridges.
Interoperability is not something that most blockchains have, as each blockchain is built with different standards and codebases. Since most blockchains are naturally incompatible, all transactions must be performed in a single blockchain, regardless of how many features the blockchain may have.
Marcel Harmann, Founder and CEO of THORWallet DEX – a non-custodial decentralized financial (DeFi) wallet – told Cointelegraph: “Inte...
Interoperability allows blockchain networks and protocols to communicate with each other, making it easier for everyday users to use blockchain technology.
Analysis
Each year we see new blockchain networks develop to tackle specific niches within certain industries, with each blockchain having specialized functions depending on its purpose. For example, Layer 2 scaling solutions like Polygon are designed to have ultra-low transaction fees and fast settlement times.
The increase in the number of new blockchain networks is also a result of the recognition that there is no perfect solution that will be able to meet all the needs associated with blockchain technology at the same time. Therefore, as more and more organizations become aware of this burgeoning technology and its capabilities, the interconnection of these unique blockchains becomes necessary.
What is interoperability?Blockchain interoperability refers to a wide variety of methods that allow many blockchains to communicate, share digital assets and data, and work together more efficiently. This allows one blockchain network to share its economic activity with another. For example, interoperability allows data and assets to be transmitted across different blockchain networks through decentralized cross-chain bridges.
Interoperability is not something that most blockchains have, as each blockchain is built with different standards and codebases. Since most blockchains are naturally incompatible, all transactions must be performed in a single blockchain, regardless of how many features the blockchain may have.
Marcel Harmann, Founder and CEO of THORWallet DEX – a non-custodial decentralized financial (DeFi) wallet – told Cointelegraph: “Inte...
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