Is Interoperability the future for blockchain technology?

Is Interoperability the future for blockchain technology?

Blockchains are everywhere these days. They’re starting to take over the Fintech scene, offering new technology and capabilities that the world has never seen before.

Interoperability plans on taking the technology to the next level.

Blockchains have their limitations. Market leaders in blockchain such as Ethereum and NEO are starting to hit roadblocks, finding scalability and adaptation a real problem.

Before we can delve into Interoperability and what it offers, we first need to understand what a blockchain is.

What is a blockchain?

A Blockchain is a decentralised network that it is distributed among a peer-to-peer network on computers around the world. It doesn’t need a central authority to regulate it.

It’s a ledger but in digital form, recording all transactions and transfers of values that takes place.

A blockchain is immutable, which means that it can’t be changed or amended by anybody. Once something is recorded on the blockchain, it stays on the blockchain forever.

 A copy of the ledger is available to view at any time, for anyone. All blocks are time-stamped, allowing the network to track information on trades and transactions.

Blockchains can host decentralised apps (DApps) and smart contracts. DApps are applications that can built on top of the Icon blockchain and will facilitate gaming, e-commerce and online businesses. 

Smart contracts let you exchange money, property, shares, or anything of value without a middleman, taking the hassle out of the process.

Blockchains can hold information on anything; transactions made, hospital records, insurance records, financial information and student records.

Some companies may want to access all of this information at once and exchange information to another blockchain, yet are limited to finding the information on disparate blockchain networks.

Solving this problem is a real issue moving forward as when the technology starts to become common place and businesses start to adopt the technology, the blockchain needs to be able to store the data, exchange information and process transactions and smart contracts without delay.

The solution for some is to make blockchains that can connect, transact and exchange with each other.

Some people are calling the newer blockchain networks Blockchain 3.0, and forward thinkers in the Cryptocurrency space hope they can address these issues quickly.

Interoperability is the answer to their problems

The Blockchain Interoperability Alliance, co-founded by Icon, AION and Wanchain, shares the vision of promoting interconnectivity between disparate blockchain networks. 

The common goal of the alliance is to connect blockchains together and allow for the seamless connectivity that is missing from already archaic blockchain networks.

The Aion network is a multi-tier blockchain network established to solve issues with scalability, privacy and interoperability in blockchain networks. It allows unique blockchains to interact and communicate with each other

“We believe that collaborating across projects will help set best practices for blockchain interoperability and encourage broader market adoption across enterprises and the public” Matthew Spoke, Founder, Aion.

Icon is a Blockchain platform that wants to connect Korea and the world together, freeing them from the bounds of a centralized system. Interoperability is their goal, aiming to link and connect all Blockchains together and create communities that can interact with each other.

“ICON project was first started by the request of our enterprise blockchain clients to interconnect with other blockchain networks. The goal of this alliance is to create a globally accepted standard for connecting blockchains and to bring innovations together” JH Kim, Foundation Council, ICON

The Wanchain network is a distributed financial platform that enables private, cross-blockchain smart contracts and the digitization of assets.

“The Blockchain Interoperability Alliance will play a crucial role in increasing the connectivity of our digital assets and our lives.” — Dustin Byington, President, Wanchain

Each network has a role to play in the alliance and are market leaders and pioneers in their respective fields. They all have hugely influential leaders and financial backing behind them.

Connecting everyone with everyone

Interoperability isn’t just confined to these 3 networks. The alliance was formed so that every blockchain ever created can communicate with each other.

All major networks such as Bitcoin, Ethereum and NEO can use interoperability to interact with each other. Smaller networks can use this too.

The possibilities are endless and the application of Interoperability can completely transform the landscape of blockchain technology in the next 5-10 years.

Icon are the major driving force behind the alliance. Icon is one of the more pioneering projects in the blockchain ecosystem and is currently leading the way in Interoperability, creating links and connecting blockchains together. 

The incredibly influential Blockchain advisor and author Don Tapscott, who acted as an advisor during ICON’s token sale, said recently that ICON is the network to watch out for in 2018, saying that it addresses “critical issues of scalability, interoperability and governance.”

One ID to rule them all

Blockchain technology and cryptocurrencies are all about privacy and protecting your identity.

However, if you wanted to use all of the blockchains under one name, you would need a unique identification number or an ID to use them.

This is where blockchain-based identity is changing how we use blockchains. It’s huge when it comes to privacy and allows a user to have one private decentralised ID for use on all blockchain networks.

This could store your hospital records, insurance details, financial information and anything else you wanted under one name. All stored on the safety, privacy and immutability of the blockchain.

Icon introduced the ‘world’s first enterprise Blockchain service’, Chain ID. The Chain ID can authenticate and verify digital signatures without a third party.

This ID will eventually be able to identify you across all Blockchains connected to the Interoperability alliance and in the future, any blockchain that uses the technology.

The Decentralized Identity Foundation (DIF) are a consortium formed earlier this year in a bid to promote interoperability and standards for blockchain-based ID systems.

They are working closely with IBM and Hyperledger to incorporate Interoperability across all blockchain networks.

This could create a network of blockchains, all connected and all able to transact, exchange, build off of each other and allow for full Interoperability with each other.

Interoperability is leading the way in changing Blockchain technology for the better. 

If you have any predictions for blockchain technology, want to talk about Cryptocurrencies or need any help in getting set up for investingtweet me on Twitter, leave a comment below or reach out using the contact page. Thanks!

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