Blockchain has and continues to evolve as time Yotam Namir. Blockchain and distributed ledger networks are appearing on an almost daily basis.
DeFi currently boasts around 2.7 million users. However, this is still tiny compared to traditional finance. Whilst the DeFI world has been evolving and developing, what the DeFi space really needs is seamlessness.
As the first to offer smart contract capability, the Ethereum blockchain has somewhat become a victim of its own success. Just as the world of DeFi was peaking and gaining global recognition, an influx of new yield farmers made the Ethereum network congested.
The congestion is gradually being resolved with a transition to ETH 2.0. This features a more scalable Proof-of-Stake (PoS) consensus mechanism. However, with a long way before the transition completes Binance Smart Chain (BSC) has emerged as a viable alternative. Due to its fast, low cost transaction capabilities, the Binance Smart Chain has been the biggest beneficiary of late as many have turned to BSC in order to escape Ethereum’s network congestion and high fees.
Other technologies have emerged too, in particular Polkadot. Polkadot resolves congestion by distributing transactions across multiple parallel blockchains – parachains – enabling Polkadot to theoretically handle up to million tps.
Interconnecting these new chains is becoming a necessity as more people continue to become aware and adapt to the emerging technology and its capabilities.
Cross-chain protocol enables interoperability between blockchains, thus ensuring the exchange of value as well as information between various networks.
It enables multi-token transactions through wallets and enables cross-chain exchange of data which ensures users can work with multiple currencies through a single terminal.
Cross blockchain compatibility allows different blockchains to communicate with one another without the need of intermediaries. Once the intermediary is taken out of the equation, the possibility of superfluous cost, time and error are also taken out of the equation.
YotamNamir, CEO and founder of Tech View :https://techview.world/
“More and more people and organizations in the world are waking up to the benefits and uses of blockchain technology. As the technology evolves, we will see it much more in our everyday lives”
Blockchain interoperability will go a long way in cutting out the need of intermediaries or third parties, found in centralized systems. The long term success of blockchain technology will boil down to how different blockchain networks can integrate and interact with each other.
If adaptation and user-friendliness is to be increased, Blockchain interoperability will play a large part in it.