This interoperability will, in turn, permit various blockchains to talk to each other, enabling them to have seamless sharing across the networks and creating a highly effective decentralized and connected ecosystem. Currently, most blockchain platforms are operating on an island from other systems with limitations for transferring assets, use cases with smart contracts, or sharing information across the networks. Interoperability solves this problem; blockchains can talk to other blockchains easily, yielding an integrated blockchain world.
Interoperable blockchains enable users to transfer classes of assets, such as tokens or NFTs, between chains without relying on centralized exchanges. This opens up a whole world of possibilities-from multi-chain DeFi applications to provide even better liquidity, to gaming ecosystems where digital assets move within and across games. Already, blockchain bridges for handling cross-chain interactions, interoperable protocols, are in development.
This gives blockchain projects more scalability and flexibility because interoperability means they can use different blockchains for each of the various strengths that each possesses, whether that means faster transaction times or lower fees, while being insulated from their respective weaknesses. Another recent example of increased functionality is that interoperability creates dApps able to engage multiple chains at one time and broaden their capability and current user base.
However, despite the possibilities promised, complete blockchain interoperability faces onerous issues in the attempt to achieve security with cross-chain transfers and an absence of standardization. These will be the necessary ingredients that actually make it possible to have a better-connected blockchain ecosystem for wider adoption.
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~ Nesaty
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