Interoperability in the Blockchain — What Is It and How Does It Work?

We’ve all equated decentralization with the blockchain by now, which makes perfect sense as one of the main characteristics of blockchain technology is its decentralized nature.

However, with decentralization comes a lot of uncertainty. How can different blockchains connect? Can we find anything universal about them? It is clear that there are many dilemmas here, which is why blockchain interoperability has become a hot topic in the last few years.

This phenomenon is bound to have a profound impact on the crypto sphere and beyond and will undoubtedly lead to more innovation and growth. But what is it? How does it work? More importantly, what does it mean for you? Let’s find out!

Blockchain Interoperability Explained

Blockchain interoperability is a highly complex technology from a scientific point of view. However, what it does is simple — it allows different blockchains that operate independently to connect and communicate.

Thanks to interoperability, blockchains can share data, information, and more. In other words, regular users get to use different blockchains without worrying about compatibility issues.

For a better understanding, it’s best to consider emails. When you send an email to someone, you don’t have to worry about choosing the same provider the other person uses. They might have AOL, Outlook, Yahoo, or any other service, while you use Gmail or Zoho Mail. It doesn’t matter, as the email will reach the other address regardless of the provider. This interoperability of email technology is what made it so successful and widely adopted in the first place.

With blockchains, this isn’t true. Some blockchains are interoperable, and we have several pioneering this technology, like Polkadot, Cosmos, Cardano, and others. However, most aren’t, so you may not be able to use them all the time.

With blockchain interoperability, every blockchain would be able to interact and send data and messages to another.

Importance of Interoperability for Web3

As we all know, Web3 is on its way. We might not be able to predict how it’ll look, but various blockchains will certainly play a key role.

What’s more, decentralized finances will be one of the biggest parts of Web3, and it’s one of the main reasons why we’ll need to introduce true blockchain interoperability to make this a reality. People will want to manage their finances and make payments across the web and different blockchains without having to use…