What is interoperability?

The term blockchain interoperability is increasingly being talked for

some time now. It not only means the possibility that disparate blockchain systems can

communicate with each other. Above all it is the ability to share, see, and access information

across different blockchain networks without the need for an intermediary – like a centralised


So, blockchain projects that want to implement interoperability into their platform aim to

create an ecosystem that will enable different blockchains to easily communicate with each

other. The vision of interoperable enterprise blockchains thereby rests on a number of

functionalities and abilities including: integration with existing systems, initiate transactions

on other networks, conduct transactions with other chains, transact between deployments on

the same chain by integrating apps and making it easy to switch one underlying platform for

another underlying platform for another.


Why is interoperability critical?

It is easy to see why interoperability for blockchain is not only desirable, but above all critical,

in a world where enterprises depend on ever-greater levels of collaboration and interaction.

In fact, interoperability is crucial in any software system – it simply won’t work to its full

potential if it can’t work with other software.

It is the only way to realise the full promise of enterprise blockchain and get the most out of

their blockchain investments. Interoperability would enable smooth information sharing,

easier execution of smart contracts, a more user-friendly experience, the opportunity to

develop partnerships, and the sharing of solutions.


Where is interoperability needed?

Especially in areas where the value chain is important, such as supply chain, trade finance,

healthcare, aviation, etc., one blockchain network will simply be unable to provide all the

needs for any given transaction. This asks for multiple networks, each providing specific

value, and proper communication so that data from private networks can be routed to other

relevant networks for transactions “without having to establish a one-to-one integration”.

“Everyone is dependent on physical goods’ ability to move across all participants in the

global supply chain with minimal friction. We need the same ability to move a digital asset

from one blockchain to another without creating redundant data or a new market for

intermediaries. This is why blockchain interoperability is critical.” Rasmus Winther Mølbjerg,

Director, Deloitte, Denmark.

Blockchain’s characteristics allow disconnected supply chain management systems to

interoperate securely without too high investment costs. Because of the pressing need for

supply chain transformation, leveraging these characteristics ensures that blockchain can be

useful and effective in the real world.


Interoperability Coins:


1. Polkadot (DOT):

Polkadot development is on track to deliver the most robust platform for security, scalability,

and innovation. Currently, Polkadot is in the Governance and Removing Sudo phase of


Polkadot Features:

 True interoperability – Polkadot enables cross-blockchain transfers of any type of

data or asset, not just tokens. Connecting to Polkadot gives you the ability to

interoperate with a wide variety of blockchains in the Polkadot network.

 Economic & transactional scalability – Polkadot provides unprecedented economic

scalability by enabling a common set of validators to secure multiple blockchains.

Polkadot provides transactional scalability by spreading transactions across multiple

parallel blockchains.

 Easy blockchain innovation – Create a custom blockchain in minutes using the

Substrate framework. Connect your chain to Polkadot and get interoperability and

security from day one. This ease of development helps Polkadot’s network grow.

 Forkless and future-proof – Polkadot can upgrade without hard forks to integrate new

features or fix bugs. This capability enables Polkadot to easily adapt to changes and

upgrade itself as better technologies become available.

 Security for everyone – Polkadot’s novel data availability and validity scheme allows

chains to interact with each other in a meaningful way. Chains remain independent in

their governance, but united in their security.

 User-driven network governance – Polkadot has a sophisticated governance system

where all stakeholders have a voice. Upgrades to the network are coordinated on-

chain and enacted autonomously, ensuring that Polkadot’s development reflects the

values of the community and avoids stagnation.


1. Chainlink (LINK):

Chainlink’s decentralized oracle network provides the same security guarantees as smart

contracts themselves. By allowing multiple Chainlinks to evaluate the same data before it

becomes a trigger, we eliminate any one point of failure and maintain the overall value of a

smart contract that is highly secure, reliable, and trustworthy.

 Connect to Any External API – Easily connect smart contracts to the data sources

and APIs they need to function.

 Send Payments Anywhere – Send Payments from your contract to bank accounts

and payment networks.



Cosmos is a blockchain ecosystem where thousands of dApps interoperate to create the

foundation for a new token economy. Cosmos is a decentralized network of independent

parallel blockchains, each powered by BFT consensus algorithms like Tendermint



1. NEO:

Neo is an open-source, community-driven platform that is leveraging the intrinsic advantages

of blockchain technology to realize the optimized digital world of the future.


1. Waves:

Waves is an open blockchain protocol and development toolset for Web 3.0 applications and

decentralized solutions, aiming to raise security, reliability and speed of IT systems. It

enables anyone to build their apps, fostering mass adoption of blockchain.


1. THORChain (RUNE):

THORChain is built for cross-chain permissionless digital asset liquidity. Stake assets in

liquidity pools to earn fees, swap assets instantly at open market prices, borrow and lend on

any asset, and pay in any currency. THORChain does not compete with any existing

protocol or chain. Rather it is built to connect them all in one massively liquid, redundant and

decentralised network.


1. Icon (ICX):

ICON is an interconnecting blockchain network. ICON can connect independent blockchains

without the use of additional third-party intermediaries. Various blockchains can

communicate with each other through the ICON platform. By connecting siloed blockchains,

ICON aims to become the largest blockchain in existence.


1. renBTC:

Ren is an open protocol meant to enable the permissionless and private transfer of value

between any blockchain. Ren’s core product, RenVM, is focused on bringing interoperability

to decentralized finance (DeFi).


1. Ontology (ONT):

Ontology is a new generation public blockchain project & a distributed trust collaboration



1. Alpha Finance Lab (ALPHA):

Alpha Finance Lab is an ecosystem of cross-chain DeFi products that will interoperate to

bring optimal alpha returns to users. Alpha products focus on capturing unaddressed

demand in DeFi in an innovative and user friendly way.