This article examines the issue of blockchain interoperability and the need for integrating various networks to enhance user experience.
What is Interoperability?
Interoperability in blockchain technology refers to the ability for users to leverage multiple blockchains for different purposes such as transactions, investments, and daily expenditures. All blockchains were developed independently of each other, using different programming languages, consensus mechanisms, and node communication protocols.
Why Does Interoperability Matter?
The current state of interoperability in blockchain limits users' ability to utilize different blockchains for various tasks. For instance, users face the necessity of moving funds between different networks, often incurring additional costs from transaction fees.
Current Solutions for Interoperability
Existing solutions like Chainlink's Cross-Chain Interoperability Protocol (CCIP) permit limited exchanges of stablecoins between blockchains, yet no single solution has emerged as dominant in interoperability. Cosmos's IBCP provides secure data transfer between blockchains, but it too has limitations.
As of now, blockchain interoperability solutions are limited and require further development to ensure confident interactions between different consensus mechanisms.
