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Interprobability:
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
exchange.
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
launch.
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.
1. COSMOS (ATOM):
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
consensus.
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
platform.
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.
