"Interoperability": What Is It and Can It Be Achieved in the Blockchain Space?

Recently, interoperability has become a common term in the blockchain industry. Simply put, it means that two or more blockchains can coexist and work together.

Currently, the blockchain industry is dispersed, with numerous distinct chains running independently, each like a universe unto itself. For instance, because they are built on relatively distinct protocols, it is challenging to switch the two NFTs if one is created on one blockchain and the other on a different one. Similar to how it's impossible to install an Android app on an iPhone, this is also true.

For instance, when Ethereum was created, its creators had no concept that its blockchain would eventually need to be somehow connected to other blockchains. In other words, a significant barrier is that Ethereum cannot function with other chains. Similarly, Satoshi Nakamoto, the enigmatic developer of the Bitcoin blockchain, who achieved the first significant success, was unable to foresee how events would develop. He was unaware that a great deal more than simply cryptocurrencies would be employed with many other blockchains.

However, this is gradually shifting, and a number of well-known chains, such as Ethereum and Bitcoin, are being redefined to support interoperability.

Trading Across Chains Is a Serious Problem

The capacity to exchange cryptocurrencies on various blockchains is known as cross-chain trading. The good news is that some initiatives can profit from the redeveloped chains that are being made interoperable.

One such initiative is Primex, a cryptocurrency exchange that is now under construction. Primex will initially only be accessible on Ethereum, but its second iteration will also be made available on networks that support Ethereum. Users of Primex can exchange cryptocurrency pairs across many chains in this fashion.

Is the Future Compatibility?

All parties in the blockchain and DeFi industries have come to the conclusion that enabling interoperability is far more advantageous than maintaining siloed blockchains. Given that the Bitcoin network is large enough to support itself, it is safe to presume that it won't soon move towards interoperability. Interoperability is only beneficial for Ethereum and all other blockchains.

It is safe to expect that all future blockchain-based initiatives will be developed with interoperability in mind, and that those that are already in existence will change as much as feasible to interact with other blockchains.

With varying degrees of success, some projects have already devoted their entire attention to resolving the interoperability problem. Cosmos and Polkadot are undoubtedly the two most successful businesses right now, but we should also mention Harmony, Wanchain, Chainlink, Hybrix, and even Loom Network.

Web3's Interoperability Foundation

The term "Web3" or "Web 3.0" alludes to the upcoming, fully decentralized version of the internet and has recently become one of the most popular buzzwords. Of course, for that to happen, cooperation from all parties is required, beginning with making blockchains interoperable.

To some extent, building a network of decentralized networks is necessary if we are to set the groundwork for the third iteration of the internet. Although blockchains are gradually becoming more accessible, it appears that it will be some time before they are fully exploited. This is likely to happen.

The majority of optimistic forecasts state that Web3 will begin to take shape by the end of 2022, but this is just the beginning and much more work needs to be done before it becomes a reality.

Final Reflections

The idea of interoperability is real. Numerous chains are already compatible with many other chains across the blockchain and DeFi landscape. In fact, some chains are already so interconnected that they formed a chain of chains, enabling cross-chain transactions simple for users of all compatible networks.

When it comes to complete interoperability, where all blockchains can communicate with one another, we're still not there. Even so, is this possible? Will the Web3 paradise ever come to pass? It is still uncertain.