The Power of Interoperability Within Blockchain Ecosystems


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Interoperability has become a hot keyword in the blockchain space in recent years. Mainly a blockchain interoperability it is the potential ability to communicate between blockchain ecosystems through the building of link chains or ‘bridges’. These bridges ensure that two different blockchain mechanisms can interact, share information, and connect.

Due to the fact that each blockchain stores different information, creating an interoperable system ensures that communication across the blockchain is as effective as possible. With more individual chains working together in an interoperable system, the power of the ecosystem as a whole is increased.

Systems that rely heavily on interoperability see a wide range of positive benefits, ranging from higher transaction speeds to a broader range of potential blockchain applications. The connection between these chains is based on cross-chain technologies, which allow different paths to be forged and maintained between two or more different blockchains.

As an ecosystem becomes more interoperable, blockchain technology itself becomes more effective, helping to build projects, launch multi-token transactions, increase privacy, and further develop the potential security an ecosystem can offer. In short, interoperability is one of the most important aspects of blockchain and will help further develop the entire industry.

In this article, we will take a look at the major blockchain ecosystems that are driving blockchain interoperability on both a microcosmic and macrocosmic scale.

Meet Polkadot, the leading blockchain interoperability ecosystem

When Polkadot released his parachute system in late 2021, they radically increased the degree to which their platform could work with interoperability. This is a layer one blockchain system that overcomes many of the limitations that apply to other layer one systems like Ethereum.

Polkadot Parachains are focused on enabling independent platforms, blockchains, DeFi communities, and economies to connect to the overall Polkadot system. With this flexibility, developers can use the set of tools Polkadot provides to build effective applications, taking full advantage of the blockchain system Polkadot already has in place. With this developer freedom, more and more chains have started linking to Polkadot, using its security services to start building more complex blockchain systems.

One of the factors that acted as an inhibitor to the growth of legacy systems like Ethereum was their low transaction capacity, only managing around 15 transactions per second. To overcome this, Polkadot offers more 1,000 transactions per secondcompletely solving the scalability issue that has plagued legacy systems.

With no need to pay extremely high gas fees, Polkadot allows its users to design, develop, and build complex blockchain-based application projects. It doesn’t matter if the app is an independent economy, a smart contract, or specifically designed to enhance the Polkadot ecosystem, it’s easy to link a new chain to the system.

Polkadot has further pushed the idea of ​​community support into their project by hosting new Parachains on their crowdlending system. From this, users can financially back Parachain projects they find interesting, increasing the speed with which new features are developed on the platform.

An example of one of these projects is polkadex, which offers a fully functional cryptocurrency exchange outside of Polkadot. Offering a variety of user-friendly financial functions, Polkadex uses Polkadot interoperability to further increase the variety of functions available on the core blockchain. By doing so, both the value of Polkadex and Polkadot increase, as they simultaneously connect and become symbiotic.

This is just one example of many projects Polkadot has introduced using its interoperable Parachain system. This breakthrough represents a new step in blockchain, allowing many independent projects to be linked into an ecosystem with fast transaction speeds and low costs.

Taking interoperability even further with Oraichain

While ecosystems like Polkadot allow independent chains to link together into layer one ecosystems, providing a fantastic playing field for developers to build on, it falls short of global interoperability.

That’s where Oraichain AI Oracle enters, with the goal of creating an unprecedented level of interoperability across all major blockchains. Oracle AI represents the ability to create smart contracts that are processed more efficiently. They mark the beginning of the end of the era of “read only” smart contracts, making these contracts much more efficient.

Because of this, when a chain starts using Oracle AI provided by Oraichain, the AI ​​system allows developers to create and interact with smart contracts within a variety of programming languages. With this in mind, they can then be adapted to bridge effectively across any popular blockchain.

While a system like Polkadot will allow other independent chains to connect within their ecosystem framework, AI Oracle will allow interoperable networks to form between ecosystems on a large scale. Popular blockchains like Polkadot, Binance Smart Chain, Cosmos, and Ethereum gain the potential to be interconnected, shifting the progress of interoperable blockchains into hyperspeed.

In addition to the potential to forge cross-blockchain connections, Oraichain also offers a full range of services in its suite, allowing users to create Ai models to solve problems. The development of this AI API allows artificial intelligence to enhance smart contracts, securely accessing and linking external APIs.

Like Polkadot, Oraichain is a community-based project, with user support at its core. That’s why validators and stakeholders democratically review any changes to the system, ensuring that the project stays in line with the community’s directors and goals.

Within the Oraichain system, they also have built-in features that attract new developers to the ecosystem. By offering rewards to users who post, edit, or refine work in the Oraichain ecosystem, they effectively ensure that new features are released regularly, further driving the extent to which the AI ​​system continuously advances.

With this, the capabilities of this interoperable system only grow further, channeling more progress towards the innovative connection system. By linking across multiple chains, Oraichain represents a step towards bridging all major blockchain networks, demonstrating the future potential of this system as a leading blockchain ecosystem.

Final thoughts on interoperability

Blockchain faces two large-scale problems, each of which acts as a limiting factor for its development. The first of these, scalability, is most evident within the Ethereum blockchain ecosystem. However, with the development of ecosystems that can process more transactions in a second, this limiting factor has quickly become a thing of the past.

The second limiting factor is the extent to which individual blockchains can communicate and pass data. However, with the growing awareness of interoperability and micro and macro scale advancements by ecosystems and chains like Polkadot and Oraichain, this too has become a fact of the past.

As we continually move towards a stage of blockchain development where we see a level of advancement of interoperability, entire ecosystems become more reliable, more secure, faster, and continually get more features.

With interoperability comes the success of blockchain, this incredible system that enables chain intercommunication and solidifies blockchain as a technology that is here to stay.