How blockchain interoperability is shaping the future of collaboration

What is interoperability?

Interoperability refers to the ability of different systems, devices, and software applications to seamlessly collaborate while exchanging information and performing tasks efficiently. This means that diverse systems and components can communicate, share data, and use shared functionalities, whilst avoiding compatibility issues or the need for extensive modifications.

In essence, interoperability acts as a binding agent, the smooth operator of the data world, making sure everyone can handle data and communicate with ease.

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What’s blockchain interoperability? 

Blockchain, at its core, is a distributed ledger system that supports secure and transparent transactions across a network of computers. 

Blockchain interoperability is like interoperability squared. It allows effective communication, data exchange, and interaction between different blockchain networks. Users can then transfer assets, information, or value between different blockchain platforms with no regard to underlying protocols or architectures. 

In practice, blockchain interoperability supports:

• Data Exchange: Data exchange focuses on the sharing and transfer of information or data between disparate blockchain networks. It involves the ability to exchange data, such as transactions, smart contract information, or other relevant data points between interconnected blockchain networks. Blockchain interoperability establishes standardised protocols or mechanisms to assist such exchange of data. This can be particularly beneficial in scenarios where multiple blockchains hold complementary or related information, which can be easily integrated, thanks to the genius of interoperability.
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• Asset Transfer: Blockchain interoperability offers the potential for transferring digital assets, such as tokens, between various blockchain networks with varying levels of reliance on intermediaries or centralised exchanges. This means your ability to send assets to anyone in any part of the world is significantly enhanced compared to the typical procedures and scrutiny associated with centralised systems like banks or governments.
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• Scalability and Performance: Interoperability can help address scalability challenges by allowing transactions or computations to be processed across multiple blockchains simultaneously. This allows for workload distribution, enhancing the overall performance of individual blockchain networks involved. Such distributed processing ability removes the majority of scalability limitations for individual blockchains. And the ecosystem thrives as a result. 
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• Collaboration and Ecosystem Development: Interoperability fosters collaboration and the creation of a broader blockchain ecosystem. It encourages innovation by enabling developers to build applications that span multiple blockchain platforms and leverage the unique features and capabilities of each network.

Overall, interoperability in the blockchain creates a bridge between data integration and collaboration for different blockchain networks, enhancing their functionality, scalability, and potential for widespread adoption.

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Blockchain interoperability as a business solution

Blockchain interoperability presents new opportunities for consultants and business leaders. There’s a range of problems it can solve:

• Limited Market Access: Without interoperability, organisations are confined to the boundaries of a single blockchain network, restricting an organisations' access to markets and users that are exclusively associated with specific blockchain networks. With interoperability, businesses can connect and transact in new markets, reach a broader customer base, explore new partnerships, and cater to the needs of different communities. 
• Data and Asset Portability: Blockchain interoperability significantly simplifies cross-chain transactions, allowing data and digital assets to reach their destination. The risk of fraud is minimal, which invites more players to the game. This translates to broader market participation, and trust between different parties.

Future-Proofing: Blockchain interoperability ensures that businesses are not locked into a single blockchain network or protocol. This flexibility leaves the door ajar for upgrades and new developments in the blockchain landscape.

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Interoperability between blockchains is a key feature of FALKOR

We found Coin Republic's discussion on blockchain interoperability intriguing, especially in relation to our FALKOR platform. Interoperability has always been a driving force behind our decision to incorporate specific services into FALKOR. 

FALKOR, the cutting-edge blockchain platform we’ve built at ByzGen, excels in bridging different blockchain networks, ensuring smooth data integration and facilitating cross-chain transactions. 

The ability to facilitate seamless communication between different blockchain networks is crucial. One of our recent projects involved working with an ecosystem where participating entities generated various types of data transactions, each requiring a different blockchain solution. FALKOR stepped in as the bridge, deploying and running IOTA, Hyperledger and Corda solutions. Hyperledger provided a consensus-driven golden record, validating and proving the latest data states within the ecosystem. And Corda facilitated private transactions, brokering data between entities. Another vital aspect was ensuring synchronisation and bridging the transaction results between the two solutions.

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Blockchain interoperability for data exchange 

Data exchange concerns have also stayed at the forefront ‍of our minds when constructing our bridging solution, FALKOR. 

Let’s imagine a scenario where one party within an ecosystem chooses their preferred blockchain solution for data transactions. Initially, it works as the well-oiled machine it’s designed to be. But issues arise when the company needs to exchange data with another party that uses a different blockchain solution. They need a bridge between the two to make this transaction work. 

That’s where the bridging capabilities of FALKOR come in handy. In this scenario, the platform can not only facilitate data exchange but also offer maintenance and auditing support for both parties to clearly see how the data they own is being interacted with.

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Public blockchain solutions

When it comes to public blockchain ByzGen has historically focused on interoperability with IOTA, the open source distributed ledger designed for IOT (Internet of Things) networks that connect internet enabled devices, such as sensors and wearable tech. This means we can offer hybrid options that allows us to accommodate the interoperability needs of different datasets, transaction types and platforms.

We’re now seeing public blockchain technology and solutions improving at a rapid pace. 

For example, Hyperledger Besu is an integration service that we are now using to provide exchanges between FALKOR-driven Hyperledger networks and the public Ethereum blockchain. The way we’ve built FALKOR means that a platform can easily sign in to a large and scaled public blockchain if the need arises. In this instance that means FALKOR can create a large number of proofs and signatures at scale, accessing an increased number of validation protocols as a result. Bridging data from an existing Ethereum client or peer into the platform is one of its strong suits.

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ByzGen’s interoperability expertise

If interoperability between blockchains is something you’re working on and need a helping hand with, our blockchain platform FALKOR will be the answer you’re searching for. Get in touch with us or book a discovery call, and we’ll be happy to find the perfect fit for your business.