As the world of the Blockchain keeps evolving and evolving rapidly, it is bringing into light the development of a lot of Blockchain networks that we might not even be familiar with years ago. Those Blockchain networks comes with their own consensus mechanisms as it is called and also their governance models. The Blockchain technology or let me say the first Blockchain network started from bitcoin and advanced to other form like Ethereum and many more. Years back, there have been a lot of Blockchains that have rise up since then to have their own ecosystem.
The rising of more Blockchain networks as the year goes on create an innovation of something called the interoperability protocols. What do I mean by interoperability protocols, they came in place to help facilitate the development of interaction between a lot of the Blockchain networks that we have around. The interoperability protocols play a major role in the development of the Blockchain landscape and helps to increase the innovation much more.
Let me first by starting to establish what is cross chain communication. When I talked about the cross chain communication, I mean the ability in which a lot of Blockchain networks who work differently exchanges information to each other. Every Blockchain network have their own asset and data limited to it but with cross chain communication, there is ability for information to be transferred from one blockchain network to another even though they operate differently.
What do I mean by that? Let me give a perfect example, even though bitcoin can not be used on the Ethereum Blockchain network directly as it were. There needs to be an intermediaries or solutions given that will allow it as there need to be an available bridging solutions which will allow bitcoin to operate on the Ethereum network even though they are two different Blockchain network who operate differently. There is a need for more way to perfectly allow those blockchain network to still operate together and that is what the Corsa chain communication do as it helps different networks to interact together.
Talking about some key interoperability protocols that we have and their mechanisms because we have a lot of interoperability protocols which work differently on a different mechanism but every of the protocols strive to also achieve the cross chain communication. I will be talking about some of them briefly;
Polkadot - The first and most popular interoperability projects or should I say protocol is the Polkadot. Polkadot as the name implies is developed on the web3 and been developed by Dr Gavin Wood which is part of the founders of Ethereum as it were makes use of something called the relay chain to connect lot of Blockchain networks together. The relay chain helps to increase the speed of transfer of data between those Blockchain and they enhance security at the end of the day.
Cosmos - The second one I will like to talk about is the cosmos. For many of us, it might be the first time and for many of us we might have been familiar with it. In the case of Cosmos, they make use of something called the inter blockchain communication (IBC) which helps to make a lot of different Blockchain to be able to exchange data with ease. There is also something called the Cosmos hub which helps to connect the zones that helps to enhance faster and more secured transactions to be carried out.
Even though interoperability protocols have a lot of features to offer to, it also have it's own features and mechanisms that it works with which I will be explaining below.
Interoperability offer a whole lot of benefits to the Blockchain space beyond what we can ever imagine of and some of the advantages. The first is that it helps to actually enhance efficiency. With cross chain communication, it helps to remove internediaries and at the end of the day, more efficiency are been achieved due to that.
The second advantage is that it helps to increase the more wider use cases of the Blockchain technology. What do I mean by that? With the interoperability feature, it helps to make developers to be able to build dApps that can help make use of features to help build more Blockchain effectively and this is very much more possible also through the use of the smart contract been used and the innovation solutions that it provides. This helps to give a more Decentralised technologies much more.
The last one I will like to talk about is also to help improve liquidity and the liquidity is also possible by the collaboration that happens in the ecosystem. With cross chain communication, it becomes much more easy for assets to be moved from one networks to another and this helps to increase the liquidity in the Decentralised Finance markets much more than you can ever imagine of.
As I conclude, I will like to establish that the interoperability protocols is the future of the Blockchain technology and which will help achieve the cross chain communication. Even though there are a whole lot of challenges that might still want to come up and much more, I believe the innovation and the Strategic solution that will come up in the future will help tackle the issue as it is just a matter of time. Technology is advancing day by day as it is just a matter of time before we have a collaborative digital world.