Understanding how the web3 ecosystem rapidly evolves into seamless connectivity and communications between multiple applications and different chains through cross-chain interoperability.

As the internet is evolving with blockchain technology and web3 dApps to build a future that is characterized by decentralization, security, connectivity, openness, etc, also the same with the blockchain and web3 ecosystem innovating to be more seamless and easy to use across multiple channels.

And one of the challenges in the blockchain ecosystem is interoperability because each chain is isolated which is originally designed for a specific use-case and thereby limiting communications and connectivity with other chains which affects the user experience of web3 dApps built on different chains.

This is where cross-chain technology comes in to facilitate interoperability and allow the flow of communication across multiple blockchains. with lots of web3 dApps trying to adopt cross-chain technology in this article, you will get to learn more about blockchain interoperability and cross-chain technology.

What is interoperability

Interoperability refers to the unrestricted ability for a computer system, application, or digital product to connect and exchange information with one another. I believe you can imagine the poor user experience with web3 dApps not supporting interoperability and hereby limiting the users in sharing data, performing transactions, or leveraging on features across web3 dApps built on different blockchains.

There are many examples of interoperability in everyday use, including:

• A computer mouse is plugged into a laptop and works instantly

• A camera takes a picture, saves it as a standard image format, and later being read by a computer

• A web browser reading and displaying a web page

• Plugging a laptop power cord into a standard wall outlet to charge

Why interoperability in web3

The blockchain ecosystem is still growing to be more decentralized with a high and seamless level of user adaptability in so many areas. And one of the major advancements is seamless communication among blockchains. Blockchain interoperability is needed to resolve the restrictions among blockchain protocols from communication and sharing of data, to achieve a better user experience, security, scaling functionality, and increase adaptability.

What is cross-chain technology

Web3.0 is completely revolutionizing the internet with new applications coming on board on a daily basis, a new ecosystem growing with large-scale cooperation, and startups increasingly adopting blockchain technology but due to the isolation of various blockchain protocols designed exclusively for a specific blockchain, this will affect the efficiency of the blockchain ecosystem, limiting the degree of transactions throughput because blockchain exists in large silos, and they are not able to communicate with each other.

This is where cross-chain technology comes in, which is an important technical means to realize the interconnection of blockchains and improve the interoperability and scalability of blockchains. A cross-chain architecture facilitates communications, enabling two or more blockchains to trade off their efficiencies, decentralization, features set, and security. This will improve chain efficiency and reduce isolation, allowing users and features to flow more freely with multiple blockchains.

Web3 without cross-chain interoperability

Originally from the beginning blockchain was created specifically for decentralizing transactions through bitcoin then evolve into Ethereum expanding on the foundation of bitcoin into different layers and protocols with specific use cases without interoperability. Let’s look at some of the limitations of blockchain without interoperability

• Inability to exchange or share data between multiple blockchains

• Users cannot even directly transact BTC for ETH without involving a centralized cryptocurrency exchange.

• This will affect usability in some use-cases of implementing blockchain in traditional systems like the financial system, and lack of interoperability will hinder building effective solutions e.g transactions cannot be sent from one blockchain bank to another.

• This will reduce or hinder the widespread of blockchain or web3 Dapps adoption and utilization in so many sectors.

Web3 with cross-chain interoperability

With the rapid expansion in the blockchain and web3 ecosystem to pioneer innovative Dapps that could take over most traditional systems, the importance of interconnectivity through cross-chain interoperability cannot be overemphasized because interoperability is essential to the decentralization of the web3 industry and beneficial to developers and users. Let’s look at some of the key benefits of cross-chain interoperability in web3

• Increased flexibility and choice: Cross-chain interoperability allows dApps to work across different blockchain networks, giving developers and users more flexibility and choice in how they build and use decentralized applications. For example, a dApp that is built on the Ethereum blockchain can easily interact with other dApps that are built on the EOS or TRON blockchain, without the need for any additional development work.

• Improved scalability: One of the key challenges for many dApps is scalability — the ability to handle a large number of users and transactions without becoming slow or unreliable. Cross-chain interoperability can help improve scalability by allowing dApps to take advantage of the unique features and capabilities of different blockchain networks. For example, a dApp that is built on a high-throughput blockchain like EOS can easily interact with a dApp that is built on a more secure blockchain like Ethereum, allowing the two dApps to work together to handle more users and transactions.

• Greater user adoption: Finally, cross-chain interoperability can help drive greater user adoption of web3 technologies and dApps. By making it easier for dApps to work together and interact with each other, cross-chain interoperability can help create a more seamless and user-friendly experience for dApps users. This, in turn, can help drive greater adoption of web3 technologies and decentralized applications.

• Expanded opportunities: Cross-chain interoperability opens up new opportunities for users and developers, as it allows for the creation of decentralized applications that can take advantage of the unique features of different blockchain networks. This allows for the development of more innovative and powerful applications that can solve complex problems and drive the adoption of web3 technology.

Cross-chain interoperability solutions

There are several solutions been researched and developed to enable cross-chain interoperability in web3, with so many assets and futures siloed on isolated networks which is becoming a limitation for so many web3 dApps, some solutions and approach has to be developed by some projects. Let’s look at some of those solutions and approach

• Cross-chain bridge: This is an infrastructure that facilitates the transfer of assets from one blockchain to another. Cross-chain bridges increase token utility by facilitating cross-chain liquidity between distinct blockchains and by creating connectivity for the transfer of different assets enabling interoperability in web3.

• Atomic swap: These are types of smart contract that allows users to exchange different types of cryptocurrencies directly, without the need for a centralized exchange. This is made possible by the use of hash timelock contracts, which allow for the transfer of funds between different blockchain networks in a trustless and secure manner.

• Sidechains: These are separate blockchain networks that are pegged to the main blockchain, allowing for the transfer of assets and information between the two chains. This can be useful for increasing the scalability and flexibility of a blockchain network, as well as for enabling the use of different types of consensus mechanisms.

• Cross-chain communication protocols: Such as Cosmos’ Inter-Blockchain Communication (IBC) protocol, allow for the transfer of information and assets between different blockchain networks in a standardized and secure manner. This can be useful for enabling decentralized applications (dApps) to interact with multiple blockchain networks, as well as for facilitating the creation of decentralized finance (DeFi) applications.

Concluding thought

Interoperability is essential for blockchain to gain adoption across multiple industries. It’s not just about the ability to swap crypto assets between different blockchains, but also about facilitating the sharing of other information such as health records, supply chain records, and certificates. While cross-chain solutions are still emerging, their viability offers a promising glimpse of a future with improved blockchain interoperability. As various blockchain protocols and tech giants continue to envision a future of blockchain disruption through interoperability, the hope remains strong.