What is Interoperability?
Essentially, interoperability is all about making crypto networks compatible with one another. By doing so, it is expected to unlock a world in which value can be transferred seamlessly across seperate chains and smart contracting languages, while capitalizing on the strengths that are inherent to each protocol.
Crypto Projects Are Racing to Crack the Interoperability Problem
Given that crypto networks have been incompatible with one another since day one, why so much hurry to solve the problem now? While attempts at bridging protocols have been made numerous times, in the last 18 months, developers have been actively competing to find a way. Currently, a few projects are moving ahead with plans to roll out proprietary solutions in the works.
There are many reasons fr this new found urgency. Mainly, the project to ship a viable solution for bridging major crypto networks first is most likely to dominate the market. Ethereum isa good example of this: it might not be the most user-friendly or scalable smart contracting blockchain, but its first mover advantage for developers cannot be overlooked.
There’s more than one way to cook an egg, and as the following projects working on three of the leading blockchains are demonstrating, there’s more than one way to achieve interoperability.
Bitcoin: RSK and Syscoin
Ethereum and EOS: LiquidApps
To understand it better, think of EOS and Ethereum like Android and iOS. LiquidApps enables developers to launch dApps on both operating systems simultaneously, without having to substantially rebuild the application in the process.
The DAPP Network also reduces resource costs, which can get expensive on EOS for high volume dApps. LiquidApps takes much of this off-chain, significantly increasing efficiency. LiquidLink, is the company’s solution for integrating dApps with multiple blockchains. Data and assets from chains such as Telos, Ripple, Stellar, Tron, Cardano, and Bitcoin Cash can all be fed into dApps using LiquidLink.
To Interoperability and Beyond
The next step in the development of interoperability solutions will be the creation of pan-protocol products that can effectively unite all the chains under one banner. It may sound utopic, but this has got to be the endgame for crypto networks: complete compatibility and interconnectedness, enabling blockchains to overcome the sort of barriers that are synonymous with the traditional financial world. There are regulatory and protectionist reasons why payment networks such as Visa fiercely protect their payment rails. In crypto, however, there is no justifiable reason for crypto networks to be siloed.
When the interopability race is over there will be companies who triumph and ones who fail. However, for the industry at large and the end users, the exciting thing will be the possibilities of interoperability realized which will be a major game changer for all.