Blockchain technology has brought with it a new era of trust and transparency in business. It enables secure and decentralized transactions and eliminates third-party intermediaries in transactions. This technology has been successful in a variety of sectors, such as finance, healthcare, and supply chain.

However, the blockchain ecosystem is still in its infancy and is characterized by a lack of standardization and fragmentation. This results in the systems not being interoperable, limiting their potential. The industry has recognized this issue, and the focus has moved to building bridges between blockchain networks.

Interoperability is Essential

Interoperability refers to the ability of different systems to work in unison. In the blockchain ecosystem, this means that different networks can communicate with one another and share data. Seamless interoperability of blockchain networks is essential in ensuring the technology’s mass adoption and realization of its full benefits.

The lack of interoperability between blockchain networks has been a significant hurdle in the adoption of this technology. This is because most blockchain networks offer only specific functionalities hence businesses have to choose the most appropriate one for their needs, limiting their potential.

Enabling interoperability between blockchain networks would break down these barriers and enable solutions and platforms to become more flexible while expanding the range of possibilities.

How to Achieve Interoperability in Blockchain Networks

There is no single strategy or solution to achieving interoperability between different blockchain networks. Some of the methods that have been put forward by the industry stakeholders have been presented below:

Creating Protocol Standards: This involves designing and developing protocol standards that can be integrated into existing blockchains. These protocols define how different blockchains can work together, allowing them to integrate and communicate seamlessly.

Building Middleware Solutions: Middleware is software that enables communication between different applications. In the context of blockchain, middleware solutions would enable communication between different blockchains. Through various integration protocols, middleware solutions aim to unify different blockchain networks, providing interconnectivity among them, and effectively facilitating cross-chain communication.

Creating Sidechains: Sidechains are independent chains that interact with the primary blockchain network. Through sidechains, it would be possible to integrate blockchain networks into one ecosystem. Interoperability of sidechains is maintained since they would run parallel to the primary blockchain network. Transactions could be processed and recorded separately on each chain, and the two could communicate when necessary.

Final Thoughts

Blockchain technology has the potential to revolutionize how businesses operate. However, it can only be realized if the blockchain networks are interoperable. Building bridges between blockchain networks will pave the way for the full potential of blockchain technology. The blockchain ecosystem stakeholders must work together to create practical solutions and standards to achieve interoperability.