What is blockchain and how can it affect interoperability?

Nov 29,2022
What is blockchain and how can it affect interoperability?

Blockchain has become a hot topic in the past ten years. From blockchain mining to blockchain programs, it has attracted much attention. The operating of blockchain has also become a hot topic in the field of cryptocurrencies, and will eventually become a change in the rules of the game. This will further ensure growth and innovation, and at the same time accelerate the widespread adoption of blockchain technology globally. This is a bit complicated topic, but as long as it is decomposed and explained in a logical way, anyone can understand. Let's discuss together: What is a blockchain and how does it affect interoperability?


What is a blockchain?

Blockchain is a system that records information that makes changes, cracking or deception systems difficult or impossible.

Blockchain is essentially a digital transaction classification account, which is copied and distributed in the entire computer system network on the blockchain. Each block in the chain contains many transactions. Every time a new transaction occurs on the blockchain, the record of the transaction will be added to the classification account of each participant. The decentralized database managed by multiple participants is called distributed ledger technology (DLT).

Blockchain is a shared, inseparable classification account that promotes the process of recording transactions and tracking assets in the business network. Assets can be tangible (house, car, cash, land) or intangible (intellectual property, patent, copyright, brand). Almost anything valuable can be tracked and traded on the blockchain network, thereby reducing risks and reducing the costs of all relevant personnel.

The core of the blockchain is a distributed digital classification account that can store any type of data. Blockchain can record information about cryptocurrency transactions, NFT ownership or DEFI smart contracts.

Although any traditional database can store such information, the uniqueness of the blockchain is that it is completely scattered. Many of the same copy of the blockchain database are not maintained in one position by centralized administrators, but on multiple computers distributed in the network -think about excel electronic tables or bank databases. These separate computers are called nodes.


What is the blockchain interoperability?

There are many fragmentation in the blockchain industry, and customers can choose from a variety of incompatible technologies. Nevertheless, such as transmitting token from one participant to another function and execution of smart contracts can only be executed in a single blockchain, because existing agreements and standards usually do not expect multiple blockchain between multiple blockchains Interoperability.

The interoperability in the context of the blockchain refers to the ability of the blockchain to freely exchange data with other blockchain. The concept of unwanted cryptocurrency exchange in the form of atomic cross -chain exchange (also known as atomic exchange) is one of the earliest contributions to the area of blockchain operating. Using atomic exchange, users of various cryptocurrencies can exchange their assets in a way of distrust and atoms. However, atomic exchange does not allow the tokens to transfer to the tokens from one blockchain to another, because a certain number of assets are destroyed on the source blockchain, and the same number is created on the target blockchain (re -) (re -) (re -) (re -) (re -) (re -) (re -) number of quantities (re -)) asset. Therefore, cross -chain technology is rapidly discussing the best way to improve interoperability between blockchain.


Blockchain interoperability: What is cross -chain technology?

Cross -chain technology has become a hot topic for discussion, and is regarded as the ultimate solution to enhance interoperability between blockchain. Popularly, cross -chain technology is an emerging technology that is designed to allow transmission value and information between different blockchain networks.

The increase in the use of networks such as Ripple, Bitcoin, and Ethereum, although a good thing has caused many problems, the key is the restrictions on economic and technological expansion. As mentioned above, most blockchain networks are running on an isolated ecosystem because they try to solve a set of unique needs.

The fact that the isolated operation of the chain makes people unable to enjoy all the benefits of classified ledger technology. Different blockchains cannot communicate with each other, making people unable to enjoy all the benefits of blockchain technology. Cross -chain technology aims to solve all these problems by realizing the interoperability between blockchain, so that they can easily communicate and share information with each other.


How does blockchain interoperability work?

The cross -chain agreement allows cross -multiple blockchain networks to share data and simplify the interoperability between various blockchain networks. Users can use cross -chain protocols to communicate directly with each other. Therefore, the blockchain with comparable networks can exchange value and information. However, it varies from the Internet because it cannot implement a single booking method in the same way in all networks. In order to promote transactions without using a third -party interface, each network uses a unique method to achieve blockchain interoperability.

As mentioned earlier, atomic exchange allows the two parties to exchange their tokens on multiple blockchains. In addition, due to relays, the blockchain network can monitor activities that occur on other chains. They run on the basis of chain to the chain, allowing a single contract to be a central client of other nodes across multiple chains without using distributed nodes. This allows it to immediately verify a specific central header and the entire transaction history. However, the safety of running and maintaining relay methods requires a lot of money.


Benefits of blockchain interoperability

Although there are already impressive and diverse blockchain ecosystems in independent networks such as Ethereum, POLKADOT and Solana, these different networks have meaningful interaction capabilities (called interoperability) between these different networks. Blockchain supports products and services. Furthermore:

Customable web3 services: The ability of blockchain protocols and applications to mix and match different "Lego bricks" is the key to creating new Web3 tools and platforms, which is impossible for the web2 era's retention industry and business model. Many experts believe that interactive smart contracts can promote the development of medical care, laws or real estate industries, for example, allowing important business information to be sent back and forth between private networks and public networks in a customized and controllable way. Blockchain interoperability may also eventually realize multi -to -to -currency transactions and multi -currency wallet systems, which will greatly simplify encrypted user experience.

More decentralized ecosystems: Although pure decentralization in a single blockchain network is the primary task of many blockchain items, the ability to build network interoperability across multiple blockchain represents the blockchain technology More advanced manifestations of decentralized systems and economy. One day, tens of thousands of blockchain -specific blockchains that are specific to the application communicate with each other through a decentralized main hub, rather than letting blockchain processing like Ethereum processing tens of thousands of decentralization All transactions of applications (DAPP).

Strengthen cross -industry collaboration: Blockchain technology has a wide range of industries, but the ultimate main benefits are attributed to data transparency and verification, smart contract execution and decentralized consensus. Once the blockchain used by different organizations and industries can interact with each other, the independent market and business applications that have been considered completely independent will be able to transmit data and value easier. This means that the organizations and communities that are usually not communicated with each other will be able to exchange information, use each other's advantages, and cultivate innovation easier and effectively.


Why is the blockchain interoperability important?

The interoperability of blockchain technology helps solve the problem of assets and data across multiple chain interactions. When the two parties use the same blockchain platform (such as Bitcoin), it is a simple process to exchange data and value in a digital manner. However, when all parties use different blockchain platforms, it is impossible to do this.

In fact, the digital transmission process has become more difficult, because companies that use blockchain technology worldwide operate in a wide range of blockchain networks. However, interoperability is expected to greatly reduce such problems, making it easier for all parties to trade across the blockchain and enjoy the benefits of blockchain interdependence.


Why is the blockchain interoperability indispensable?

Let's try to understand this problem through an accidental example. When we transfer physical products worldwide, what are we most concerned about? Obviously, traffic is smooth.

Digital transmission or sharing also requires the same thing. It takes the same ability to transfer digital assets from one blockchain to another blockchain. This process further requires the freedom of new intermediary agencies and markets. Make sure this freedom is difficult, which is the vital reason for blockchain interoperability.


Benefits and challenges of blockchain interoperability

Cross -blockchain compatibility provides many benefits. For example, through interactive smart contracts, laws and medical care industries can exchange data between private and public blockchains to assist in creating previously impossible Web3 platforms. The potential availability of the multi -to -card transaction and wallet system may also be possible through blockchain interoperability, which significantly simplifies the cryptocurrency user experience.

Due to the interoperability of the blockchain, the blockchain based on the application can communicate with each other through the central decentralized hub. In addition, if the blockchain used by different companies and the industry can connect with each other, then independent enterprises that have been considered completely independent will be able to transmit data and value easier.

However, the blockchain registered on the Internet is immutable. Therefore, it is necessary to check the data before submitting the starting node. In addition, blockchain interoperability is a highly limited process. Although this function can ensure data security during the transmission process, nothing is guaranteed in a technology -driven world.

In addition, each blockchain classification has different trust models. Some are supported by one hundred miners, while others have only two. The transfer of information from less reliable classification accounts to more reliable classification accounts may make more powerful blockchain easily be manipulated by external parties and other inconsistencies.


The future of blockchain interoperability

The efficacy, efficiency and availability of blockchain interoperability solutions determine the future of blockchain technology and its use in cryptocurrency. However, many projects are in progress to support interoperability between blockchain platforms.

For extensive use, business systems like COSMOS and Polkadot need higher stability. Even if some of the efforts are successful and adopted in the future, they are not clear how they work together. Therefore, the demand for the standards for the operation of blockchain platforms that can achieve extensive blockchain platforms, API and related technologies are higher.

In addition, many countries do not recognize the legitimacy of the cryptocurrency ecosystem. Therefore, the future application of cross -chain interoperability requires the support of the supervision framework. In addition, transactions for financial and related industries require appropriate legal and regulatory procedures for cryptocurrencies and interoperability methods.


The above content is about how blockchain technology affects blockchain interoperability. Blockchain is used in multiple industries, and interoperability is necessary. The demand for interoperability is not limited to exchanging encrypted assets across blockchain. But looking forward to the future, it must also promote the sharing of other information. In addition, the interoperability of the blockchain will be built in development as a module, which will greatly improve the creation of blockchain developers to bridge the bridge to other side chains.