This article analyzes the methods and existing development projects to achieve blockchain interoperability
Despite blockchain’s growing relevance across multiple industries, it’s still a few steps away from being as ubiquitous as artificial intelligence and the Internet of Things. Increased blockchain interoperability has made it easier to adopt in business operations than it is today.
In recent years, the continuous growth of blockchain-based applications in various industries has been astounding. The global blockchain market is expected to continue to grow rapidly, reaching a valuation of approximately $70 billion by 2027. The increase in blockchain usage is not surprising, at least to researchers and workers in the IT field. As a technology, blockchain has several unique features that make it valuable in specific areas such as cybersecurity and transaction management. Blockchain has everything one would expect from a top data transfer and information storage technology, aside from a few drawbacks.
first level title
The need for blockchain interoperability
Blockchain-based networks used by most businesses are used for personal tasks such as recording transactions, facilitating payments, and storing and exchanging valuable assets. While such blockchain networks and systems provide reliability and security for such operations, the tasks themselves are isolated as two or more blockchain applications do not communicate with each other and share data to enhance the integrity of the process. automation. As mentioned earlier, other centralized systems do a much bigger job of integrating multiple tasks and operations into one ecosystem without requiring users to input data from time to time. IoT-based systems provide users with end-to-end solutions.
Automation, as we know it, is an essential part of doing business today. Today's top bosses in business are figuring out how to get the most out of both their workforce and automation technology for optimal productivity and revenue. Technologies such as artificial intelligence and the Internet of Things have redefined how to automate day-to-day business functions. Therefore, if blockchain application developers need their products to achieve more in the corporate world, the application must be designed so that the various systems cooperate with each other and provide users with uninterrupted functional integration.
The interoperability of digital tools provides users with an ease of use unmatched by stand-alone systems. Users can greatly benefit from the autonomy brought about by this network of interoperable systems. An example of blockchain interoperability is the ability for artists to tokenize their creative art assets with the help of a blockchain-based application and receive cryptocurrency payments through another connected blockchain application.
As a concept, blockchain interoperability has important business implications for organizations. However, the lack of standards for blockchain network connectivity means that the concept of blockchain interoperability has not made much progress. In addition, individual blockchain applications such as Bitcoin, Stellar, and Ethereum are constantly being developed in different directions without requiring developers to explore the possibilities of collaboration and connection.
first level title
How to achieve interoperability in blockchain?
secondary title
API method
Using this approach, blockchain interoperability is achieved through application programming interfaces (APIs) that facilitate the transfer of data payloads. Such APIs are specially designed for this purpose. The "hybrid" API approach involves the design of APIs to allow individual blockchain systems to communicate with each other. Using APIs to generate blockchain interoperability does not require developers to have extensive programming skills.
secondary title
network of cyber law
This is a far superior approach to building interoperability in blockchain networks compared to the API approach. A network of cyberlaws allows blockchain developers to make the interoperability process efficient and scalable for future use. Additionally, the approach establishes an industry standard, in addition to allowing blockchain systems to identify the presence of aggregation and communication with other blockchain networks.
As we all know, a blockchain network consists of multiple network connections. Blockchain developers can use this network architecture to digitally connect blockchain networks and create interoperability possibilities between different applications.
This process leads to the creation of blockchain network hubs that transfer data over dedicated communication channels. A network-in-network approach reduces the complexity of blockchain interoperability.
first level title
Existing Blockchain Interoperability Projects
As mentioned earlier, blockchain developers around the world are working on blockchain projects that include multiple systems communicating with each other, thereby ensuring greater automation and connectivity in operations. Some of these projects include:
The Switzerland-based Cosmos organization has developed its own Cosmos SDK platform to ensure blockchain interoperability between different applications and systems. Cosmos is a contract-based service provider that provides blockchain solutions with optimal interoperability and scalability for blockchain systems. Cosmos' blockchain architecture uses a "hub-and-spoke" system, creating a series of network "spokes" connected to a central hub to coordinate multiple blockchain systems. Using their blockchain architecture, Cosmos aims to create an "Internet of Blockchains (IoB)" that will allow individual applications to "talk" to each other in a decentralized manner.
Like Cosmos, the Polkadot blockchain is also working towards greater connectivity and scalability within the blockchain network. Polkadot is a multi-chain technology initiative involving multiple "parachains" with unique characteristics. The blockchain architecture allows transactions to travel over long distances due to the multiple chains connected in the network. While the level of interoperability is high, the level of data security is also optimally maintained. The Polkadot blockchain strives to create and maintain a high level of interoperability between private chains, public networks, and other platforms. Additionally, blockchain service providers are also working on maintaining scalability without compromising governance.
Blocknet is a decentralized blockchain-based network that improves real-time interoperability through smoother inter-chain communication and data transfer. The group's goal is to "change the way users perceive blockchain systems." Basically, the goal of Blocknet is to create a unique decentralized (yet interoperable) blockchain that will provide the reliability of traditional blockchain tools. The group also intends to create a cross-platform infrastructure for organizations.
Another popular name for developing highly interoperable blockchain solutions is Wanchain. The organization provides users with ultra-secure multi-party computation and blockchain solutions. Wanchain improves interoperability and cross-chain capabilities by using extensive research findings found in cryptography theory. Wanchain provides a proprietary protocol to connect all types of clients (public, private and federated).
This article comes from the decentralized financial community and is reproduced with authorization.
This article comes from the decentralized financial community and is reproduced with authorization.
