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Importance of ‘Interoperability’ In The Blockchain Technology

What Is Interoperability?

Interoperability is the ability of software systems or two different systems to connect and exchange information. In this connected world, there are always different systems that would connect so that the required data is provided as needed. The best example of interoperability can be termed as a web page working on a web browser if they are of the same standard.

Why do we need interoperability in blockchain?

In today’s world, we use different software, which essentially integrates to provide the resultant output. In the case of varying blockchain platforms are being developed for various purposes. Often in the same industrial space, different platforms are built, and these platforms do not know another platform.

For example, the bitcoin blockchain has no information about Ethereum blockchain. This creates a lot of siloes in the industry. Often new platforms come into picture claiming there more secure, scalable, immutable competing with the rivals. This creates a wastage in terms of resources, money, and energy of different teams.

Why is it crucial for blockchain?

To make mass adoption possible for blockchain technology. Every other platform is competing with each other to increase the scalability of blockchain. The original bitcoin blockchain was capable of sending only seven transactions per second. Later new projects came up and eventually achieved around 40,000 TPS. While Visa, Mastercard achieve approximately 24,000 TPS, but in reality, they need only 1700 TPS as per the real-world stats to be viable even with the ever-present demand.

Hence 40,000 TPS is not essential at all. Instead of concentrating on scalability, it would be better to consider improving the technology as such. Even if scalability is achieved as required in case of no interoperability, one cannot use the blockchain tech wherever needed as we use a MasterCard/visa as they can be used anywhere across the world. Hence interoperability is essential for blockchain for mass adoption.

Let us see some of the examples of platforms which allows the blockchain interoperability below:


Polkadot was developed by Gavin Wood, a co-founder of Ethereum. Polkadot is essentially a multichain or cross-chain technology that allows different blockchain platforms to be plugged into a more extensive system. Technically, Polkadot accomplishes parachains i.e., it will enable the processing of transactions parallelly between different blockchains and relays to the main blockchain through bridges. Polkadot not only transmits transactions between blockchains but also data is transferred. Information is transferred in the form of smart contracts and the abilities that come up with them.


Cosmos is just like Polkadot; it also follows a cross-chain principle. The essential difference between cosmos and Polkadot is that it only concentrates on facilitating transactions between blockchains but not data across them. Cosmos doesn’t require the blockchains to forfeit their consensus algorithm when plugged into the network. It establishes inter blockchain communication (IBC) to establish blockchain interoperability. The IBC serves as a TCP/IP like messaging protocol for blockchains.

Though these startups are at a very early stage of development in their roadmap, we have to wait and watch how it plays out. Blockchain is a niche technology, but many big players are coming into the picture to incorporate blockchain to achieve more success, and the interoperability of blockchain will make that. For any technology to gain momentum, adaptability is essential where interoperability is one thing to be achieved for the mass adaptability.

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What’s Stopping Blockchain’s Mass Adoption?


Blockchain technology came into the picture with the advent of cryptocurrencies. Since the value of cryptocurrencies is increasing exponentially day by day, people have started exploring its base technology, which is Blockchain. Blockchain has a lot of use cases in various industries say Supply chain, healthcare, agriculture, energy, data storage. In spite of all the use cases and numerous numbers of projects, consortiums in action today still the technology is considered to be nascent. Any technology takes time to reach masses, but Blockchain has certain hindrances that are stopping it from mass adoption. Let’s see some of them below.

No Universal Use Case

People often compare Blockchain as a new age internet. Just as the Internet changed the world forever, Blockchain is considered to do the same in the digital world. The Internet was created to provide information worldwide with the worldwide web. It created an industry for itself and reigned it. When it comes to Blockchain, it doesn’t have an industry of its own. It surely promises enough to revolutionize most of the existing sectors, but if there were one industry of its own, then the adoption and results would have been very promising. The combination of next-generation technologies, Artificial intelligence, machine learning, Blockchain, and the Internet of things may create an industry of its own that could be revolutionary.

Complicated Usage

The technology is quite complicated to use provided its secure nature. To perform a transaction in the bitcoin network, there should be an address with a string of numbers, wallets, transaction time, transaction fees, and a lot of stuff. All this terminology is pretty new to a novice user and finds it pretty challenging to use. Mass adoption will be possible only if we educate people enough. Most of the people know about Blockchain only through cryptocurrencies, and that notion should change. People should understand that Blockchain is much more than just cryptocurrencies.


One of the significant issues with mass adoption is scalability, i.e., the number of transactions per second (TPS). When we take cryptocurrencies, the original bitcoin blockchain processed only 7 TPS. As the adoption of cryptocurrencies increased, processing time and transaction fees increased drastically, which will discourage people from using cryptocurrencies. Visa/Mastercard supports 24000 TPS, which is used worldwide and is very reliable. Even though some platforms are claiming 40000 TPS, we should check whether they are safe enough or not.

Standardization of Smart Contracts

Smart contracts have received popularity, and many enterprises have started using the same for their business needs. But there is no standardization, and there are a lot of vulnerabilities when it comes to smart contracts. The code is not standard. There is a scope for a lot of vulnerabilities. Hence if certain standards are established like formal verification of contracts to check vulnerabilities, the security of the system increases more.

Energy Consumption Issues

It is a well-known fact that proof of work, which is mainly used in bitcoin blockchain as of today, consumes a lot of energy. Environmentalists throughout the world are entirely against it. Hence the usage of energy friendly consensus algorithms like proof of stake should be used if mass adoption is to be made. Recently Ethereum has shifted to proof of stake from proof of work, which is a welcome move.

Regulation by Governments

Finally, governments should agree or accept the trade, registrations, or any legal matter of the sort to be done in blockchain platforms. As per the government rules, if certain transactions should be done only on paper, then it is not possible to use Blockchain. Governments across the world are at least trying to regularize cryptocurrency, considering the widespread usage. Hence, technology use in other aspects should also be considered.

These are some of the reasons that are holding back the mass adoption of this amazing technology. It is important to note that there is a lot of research and development being done in this space to overcome the above-mentioned hurdles.