Interoperability: The Missing Link in Blockchain


The future belongs to those who can connect the dots, or in our case, the chains. As we stand on the precipice of a digital revolution, where innovation knows no boundaries, blockchain interoperability emerges as the guiding star that can illuminate the path to a more collaborative and interconnected blockchain ecosystem. This art of enabling blockchains to communicate with one another has evolved from being a mere concept to a critical piece of the puzzle for the blockchain ecosystem, driving progress and unlocking the potential of Web3. 

Let’s delve deep to understand this missing link that unites the diverse elements of this dynamic landscape.

The Interconnected Web of Blockchains

The interconnected web of blockchains represents a paradigm shift, where innovation and collaboration are no longer constrained by the limits of individual networks.

Why Does Interoperability Matter?

Blockchain interoperability addresses a fundamental challenge faced by the blockchain space: fragmentation. In the absence of interoperability, each blockchain operates in its own silo, with limited ability to communicate with others. This fragmentation hinders the full potential of blockchain technology, limiting its scope and use cases.

Consider the case of cryptocurrencies. A user might hold Bitcoin, Ethereum, and other digital assets on different blockchains. Without interoperability, managing these assets becomes a cumbersome task, involving multiple wallets and centralized exchanges. However, with interoperability, the user can manage all their assets through a unified platform, simplifying asset management and enhancing security.

The Power of Connectivity

Interoperability transforms the blockchain space into a global, interconnected ecosystem. It unlocks the ability to create cross-chain decentralized applications (dApps), where a single dApp can function across multiple blockchains, each with its unique strengths and characteristics. This goes beyond traditional multi-chain dApps, where instances are isolated from each other.

The Diverse Approaches to Interoperability

To achieve blockchain interoperability, there’s a fascinating array of techniques and technologies at our disposal:


These connected blockchains facilitate the transfer of assets between the main chain and a sidechain, such as the Liquid Network for Bitcoin.

Notary Schemes

Leveraging third-party notaries to bridge trust gaps between different blockchains, exemplified by BTC Relay.


Bridging on-chain and off-chain data, with Chainlink being a prime example.

Blockchain Routers

Serving as intermediaries, facilitating communication between disparate networks, such as the Interledger Protocol (ILP).

Industrial Solutions

Platforms like Polkadot and Cosmos enable blockchains to interoperate while preserving their unique attributes.

The Challenges 

Blockchain interoperability is not without its challenges. It’s akin to building bridges between diverse islands, each with its own unique landscape and security protocols. While the promise of interconnected blockchains is alluring, we must tread carefully to navigate the potential pitfalls.

The infamous Ronin network incident, which unfolded in March 2022, serves as a stark reminder of the risks involved. Ronin, a sidechain designed for the popular game Axie Infinity, fell victim to a significant security breach. In this unfortunate event, hackers exploited a vulnerability in the network’s bridge contract, resulting in the loss of approximately $625 million in digital assets. This incident highlighted the critical importance of robust security measures and the need for a security-first mindset in the development of interoperability solutions.

The Cross-Chain Interoperability Protocol (CCIP)

The blockchain community is actively addressing these challenges. Chainlink, a prominent player in the blockchain space, is developing the Cross-Chain Interoperability Protocol. This protocol aims to set a universal standard for cross-chain communication, making interoperability smoother and more secure. By integrating various oracle services within a programmable token bridge framework, CCIP takes cross-chain interactions to a new level. It stands as an effort to fortify the bridge between blockchain networks, not only enhancing the seamless exchange of data and value but also setting the bar for security and performance.

Unlocking Web3’s Potential

Blockchain interoperability is a pivotal element in the Web3 landscape. It empowers businesses, institutions, and governments to access multiple on-chain environments through a single interface. The possibilities are endless, as interoperability accelerates the adoption of Web3 applications and solutions.

With blockchain interoperability as the cornerstone, we’re witnessing a profound transformation. Businesses can seamlessly integrate blockchain technologies into their operations, creating more efficient and transparent processes. Institutions can leverage the power of interconnected blockchains to enhance services, from supply chain management to identity verification. Governments can explore innovative solutions for governance and public services.

Connecting the Chains

As Interoperability bridges the disparate elements of the blockchain, the missing link is no longer missing. It unlocks innovation, encourages collaboration, and opens the door to a future where blockchain networks work together harmoniously.

Blockchain interoperability is not a mere trend; it’s a reality that is shaping the future. The question is not whether we should embrace it, but how we can leverage it to build a brighter and more interconnected Web3 future. 

Connect with our Blockchain experts at KiwiTech to learn more and be part of the revolution.

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