Interoperability challenges of blockchains to communicate with each other

In the context of blockchain technology, “interoperability” refers to the ability of different blockchain networks to connect, exchange data and transfer assets without relying on intermediaries. The idea is to overcome the isolation between networks, creating a more cohesive and efficient ecosystem. Furthermore, interoperability enables seamless communication between blockchain platforms, allowing them to work together in a way that optimises both performance and functionality. Key components of blockchain interoperability include the exchange of data across networks, the transfer of assets such as digital tokens and the establishment of common standards to facilitate communication.

Blockchain interoperability is crucial for several reasons, including the fact that it enhances efficiency by eliminating redundancies and allowing networks to specialise in different functions. For example, one blockchain might be optimised for fast transaction processing whilst another could offer superi…