- Developing an interoperable network will grow blockchain implementation efforts and expansions.
- To be accepted by blockchain ecosystems, they must be flexible and open to interdependence across all ecosystems.
- Still, efforts are being made to build an interoperable network.
Developments focused on blockchain innovation are rapidly changing as blockchain’s popularity increased over the years. Because blockchain disrupts more than financial markets, it’s essential to have cross-chain and agnostic development. Each project aims to address a single critical element, and each projects negotiates the priority of developments.
More Than Just a $2 Trillion Stake
The current market capitalization is $2 trillion despite blockchains behaving as singular and self-reliant blockchains. Unfortunately, this creates communities that damage the industry’s natural growth: Dogecoin’s creator labelled the crypto mentality as a get-rich-quick scheme that benefits only the wealthy, simply because the current behaviors of both investors and developers are focused on their projects’ success.
Interoperability will de-scrutinize the industry’s stigma of being a means for speculation. Allerin Process Automation director Naveen Joshuai says interoperability will facilitate adoption at business levels, and decrease its technological barriers. The development of a Blockchain agnostic Protocol or Blockchain will help to normalize decentralizing technology.
Interoperability Wheels Are in Motion
Existing leading smart contract ecosystems lack the innovative energy to explore more ways to improve their network, as they already focus on scalability. Solana, a blockchain company that creates a communication protocol to enable cross-chain transactions, is exploring the possibility. Interoperability involves complete heterogeneity in current developments. This facilitates bidirectional communication orders between two separate blockchain codes.
Rafael Belchior (Ph.D.), Researcher at Universidade de Lisboa presented a study on interoperability of blockchains. He highlighted the fact that there are multiple DLT methods to achieve interoperability. Belchior notes that “different categories” approach interoperability differently, but all strive for the same end goal of creating blockchain data congruence.
Most of the developments undertaken are between two blockchains; each project has its own approaches, whether it is Wanchain’s non-custodial cross-chain layout connected with Avalanche C-Chain or Solana’s wormhole.
Dr. Belchior identified two market-capitalization top projects, Polkadot and Cosmos, which provide the innovation security necessary to reach blockchain to blockchain connectivity. The downside – users are limited to “specific implementations” and require bridges to facilitate further connectivity.
While progress is slow, immersion in the new Web 3.0 era requires complete interoperability to allow digital societies to change their behavior. Stefan Schulte claimed that blockchain is currently fragmented. To make blockchain more widely accepted, it is important that data be freely accessible without the need for permissions.
On The Flipside
- Innovation in the field currently strives for smart contract platform hegemony, progressing the scalability narrative.
- To create an efficient decentralized system, interoperability and scalability are crucial elements.
- All blockchain projects are absorbed in their own ability to create the “one” global ecosystem.
The Future is Agnostic
The internet succeeded because it unlocked interoperability and utilizing it is a seamless process. Distributed ledger technology must create a single ecosystem that adheres to established standards and preserves the online security of blockchain, while also connecting existing ecosystems. Lack of trust in networks is the reason for the rigidity of blockchain’s ecosystem. Innovation in this field can bring bad actors.
It is important to prioritize developments. But, in order for blockchain to reach global status and to be accepted worldwide, it must also meet the needs and behavior of current society. Quant’s Overledger 2.05 is a step towards increasing interoperability as it bridges stablecoins, NFTs, and DeFi ecosystems to blockchain payments.
This industry has limited innovation. The future of blockchain is not bridged; it is data agnostic and will be successful only when it can mimic or enhance the internet’s digital experience.
What are the reasons you need to care?
Existing developments offer a glimpse into how society’s standards can change if payments and other digital interactions, whether financial or personal, can impact our way of living. But, blockchain immersion and full adoption will only happen when ecosystems interact.
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