Blockchain interoperability refers to the ability to communicate between different blockchains, as well as with legacy systems. Interoperability is integral for the future of blockchain technology, but what is it that makes it so important?
Interoperability means an accessible industry
Essentially, interoperability means two things: accessibility and a diverse sector with multiple platforms and protocols.
This is important for various reasons. It ensures that the blockchain industry does not collapse if one company, or platform, does. Plus, a future with only one blockchain platform or protocol is hard to envision – it’s far more likely that there will be thousands of blockchain platforms. That’s when interoperability will become a necessity, instead of an option.
It also means that blockchain technology can, in the future, be accessible to all – even those in developing countries – through the transferability of data.
The future success of blockchain
Blockchain’s success could hinge on its interoperability.
While, of course, every blockchain start-up wants to be successful in their own right, it will become a necessity for companies to ensure that their platforms are interoperable for the widespread success of the industry. If platforms cannot exchange data, or companies are locked into one product, blockchain’s adoption will be significantly hindered.
The importance of blockchains being interoperable is intricately connected with its regulation. In the same way that regulation can cause blockchain to be widely adopted through legislation, general interoperability could mean that legislators will be more welcoming towards the blockchain industry.
Standardization of blockchain technology is, inherently, key. This means that all blockchain platforms will adhere to the same standards (including interoperable ones).
Where do we start?
There are companies that are already implementing interoperability. Our platform, STAMP, for example, is interoperable with multiple different blockchains, through adherance to RMI’s blockchain guidelines. Some companies, such as Cosmos and Polkadot, are ensuring that interoperability will become a mainstream part of the blockchain industry.
The future of blockchain will involve protocols and platforms that can work together, connecting and sharing information without friction or third parties.