Developers have long mused over how they can further harness and take advantage of the ever-expanding blockchain industry.
September 2021 research asserts the worldwide blockchain market size eclipsed $3 billion in 2020, with estimates the ecosystem would swell in value to at least $104 billion in 2028.
These numbers are more impressive when considering that many blockchains have been growing in parallel without any communication or interaction with each other. Interoperability means two or more blockchains are able to communicate with each other to share and access data.
A number of crypto projects are pursuing blockchain interoperability solutions to promote inter-blockchain communication. Clover Finance offers multi-chain indexing across Bitcoin, Ethereum, Binance Smart Chain (BSC) and Polkadot. Clover merges Polkadot’s processing power with Substrate, resulting in fast trades, anonymity, and lower gas fees.
Clover’s Sakura sister network includes a DEX and staking derivatives protocol on Kusama.
Launched in July 2021 on Coinbase Pro, Clover’s foundational cross-chain compatibility architecture is designed to offer developers additional tools alongside compatibility with the Ethereum Virtual Machine. End users also stand to benefit greatly from the lack of gas fees.
Interoperability Will Only Accelerate Blockchain Mass Adoption
Blockchain interoperability is vital as greater collaboration between chains remains the only way to fully realize the promises of enterprise blockchain. Interoperability also stands to enhance traditional sectors like trade finance and supply chain infrastructure as blockchain makes waves in these spaces.
“Interoperability and compatibility issues are key to address in a world after the coronavirus pandemic…The challenge of interoperability is not only a technology problem but even more so a problem in terms of governance, data ownership and commercial business models,” Nadia Hewett of the World Economic Forum explains.
Sharing and exchanging data between blockchains also encourages transactions, boosting the success of the underlying technology, also ensuring more people engage with various projects.
Greater user engagement only increases the success of blockchain technology in general and provides a huge advantage to new and emerging projects in the space trying to gain a footing.
Interoperability also plays an integral role in an increasingly multi-token crypto ecosystem as multi-token wallets allow users to store, trade, and transact digital assets. Clover’s ‘always-on’ functionality within its multi-chain connected wallet allows users to connect with Web3js and Polkadotjs-based dApps simultaneously, alongside interacting with other multi-chain coins and NFTs.
Blockchain has made waves in the healthcare sector for its usefulness in sharing and exchanging vital information, and many believe interoperable chains hold particular promise within sectors requiring secure, scalable infrastructure.
A Deloitte report notes blockchain technology offers “promising new distributed framework to amplify and support the integration of health care information across a range of uses and stakeholders…It addresses several existing pain points and enables a system that is more efficient, disintermediated, and secure.”
Blockchain Interoperability Enhances Security And Privacy
The immutability of the blockchain also makes the technology alluring from a security perspective, especially if developers can leverage the combined power of multiple blockchains.
Some believe interoperability could prove to be a big benefit within the healthcare industry as blockchain could help greatly enhance the integrity and quality of network data.
Patients could even interact with physicians to share data in a safe way without outside eyes looking in, as a private key could be used as a security tool to only allow specific people to view information.
Interoperability across blockchains is one of the biggest tools helping foster mass adoption of the technology. Interoperate blockchains will only smooth out business processes, promote transparency, and help reduce operational costs.
Projects that continue to emphasize interoperability will continue to play a large part in the cryptocurrency world across 2022 and beyond.
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Post source: The Future of Blockchain Interoperability Entering 2022