There is no doubt that blockchain technology has had a huge impact on the 21st century. In less than 15 years, blockchain has had a positive effect on the decentralized development of society. Without blockchain, the financial world would not be what it is now.
At the same time, NFT has had a huge impact in the art world. Modern artists cast their own NFT, and games issue NFT. The emergence of NFT has affected all aspects of the entertainment industry.
After that, the scalability and interoperability of blockchain have become important development directions, and both DeFi and NFT need breakthroughs to reach new levels.
Today, we will discuss the most important and challenging aspect of blockchain technology, interoperability.
What is interoperability and why is it important?
Interoperability in computer engineering refers to the ability of software to communicate with other software to effectively transmit and process information, and an important reason for this is that multiple systems often need to talk to and understand each other.
In the world of blockchain, interoperability refers to all the ways and technologies at our disposal that allow blockchains to transfer information, assets, and data between each other.
Projects like Binance Bridge are a good example. Nowadays, many projects are being attempted in related fields.
Lack of interoperability will hinder our progress
If users want to conduct cross-chain transactions on different blockchains such as Ethereum, Polkadot, Bitcoin, Cardano, and XRP, they will encounter the problems we discussed today.
Typically, users solve problems by transferring fees and building bridges. However, we cannot easily convert assets on one chain into assets on another chain.
We hope to mix and match different blockchains to create an interoperable smart contract Web3 platform.
Currently, most smart contracts typically only work on one blockchain, which makes them limited.
These factors may seem small, but together they create a huge pressure on the blockchain world, and every project must find a way to deal with it, creating a big convenience problem for users, although the convenience problem may be easy be ignored.
Benefits of Blockchain Interoperability
Although today’s blockchains offer vast ecosystems, these ecosystems are very limited in their ability to interact with each other. Increased interoperability will bring several benefits.
For smart contracts, if smart contracts can be easily executed across chains. Some platforms that focus on this, such as t3rn, also ensure that all contracts within their framework can be used by anyone, and the developers of the contracts can choose to get paid when their code runs.
Interoperable smart contracts could revolutionize certain areas such as business, law, or healthcare by ensuring that information can be transferred between private and public chains in a secure and customizable manner.
For Web3, being able to mix and match different blockchain applications and protocols allows us to create new and exciting Web3 tools.
Convenience, interoperability, which is the most important step towards widespread acceptance of Web3, ensures that beginners can enter the field without having to know too much about blockchain and its complexities.
While decentralization within a single blockchain network is the number one priority for many blockchain projects today, it would be a more advanced form of decentralization if we could build an interoperable system of multiple blockchains .
interoperability elements
There are currently several approaches to improving interoperability.
The first is the side chain, which is a Layer 2 platform. It represents a separate blockchain network that is fully compatible with the blockchain called the main chain. For example, Polkadot is committed to developing parallel chains so that different blockchains can be interconnected.
Next is the smart contract hosting platform. Perhaps the most important element of interoperability is interoperable smart contracts.
Some smart contract hosting platforms allow their users to host their contracts on them and then execute them on a variety of different chains.
They also open the door to a new world of open source development, helping us achieve the breakthroughs needed to bring Web3 faster.
Finally, there is bridging and Swap technology. Bridging and Swap technology are important means to improve interoperability.
The bridge allows assets owned by the user to be locked and the same assets minted on a different chain and sent to the user’s address. Swap technology allows people to exchange different tokens in a decentralized manner.
Conclusion
Every major blockchain advancement such as NFT and DeFi requires us to reach and break through the technology platform. However, our technology is once again being tested, and Web3's biggest obstacle is rearing its head, our lack of interoperability.
Interoperability enables truly connected blockchains, where smart contracts can be executed across multiple chains and assets can be easily transferred from one chain to another. In addition, truly interoperable blockchains are easier for users to enter.
There are already many projects trying to create a more interoperable blockchain. We look forward to the coming of the multi-chain world in the future.