“Yahoo users won’t be able to communicate via email with Google email (Gmail users) users” — If tomorrow’s headlines were like this, then the earth would stop. This headline will never be seen for all the right reasons. But, blockchain tech, and Decentralized Finance (DeFi), its favorite son, are headed towards this rabbit hole.
The nascent space is dominated by siloed, closed-off blockchains that have no way to communicate with the outside world. Interconnectivity is fundamental and associated with primitive human qualities of being social. Since the beginning of the barter system transfer and exchange were the core practices upon which the world was built.
The need for IBC and networking among blockchains
Blockchain applications and DeFi are a splintered group of solutions that have failed to reach their full potential. Blockchain networks must come to terms with all other networks in order to resolve this problem.
This can be done by using the Inter-Blockchain Communication protocol (IBC). It provides a platform for data transfer across networks, and facilitates cross-chain transfers of tokens and assets. IBC is a protocol that does not require a native network. It offers a solution for all blockchain solutions.
Major blockchains like Ethereum and Bitcoin are isolated without a transport layer. Their capabilities are limited by this. Imagine Bitcoin being able power Ethereum-based smart contract in an unlimited manner. If this were true, users would be able to enjoy the unlimited functionality of Ethereum’s smart contracts alongside the popular cryptocurrency Bitcoin (BTC).
Related: The future of blockchain is a multichain approach
Inter-Blockchain communication is also necessary because of Ethereum’s scaling concerns. Transactions can be done in parallel to avoid congestion by making networks interoperable. Ethereum uses IBC to validate transactions quickly and with lower gas fees. This allows it to attract more users to the network and its applications.
Blockchains that are enterprise-level solutions require interoperability and IBC to serve their clients. Networks like Ethereum or Bitcoin can be institutionally adopted by enabling cross-chain transaction. How does it work? These networks work on probabilistic transactions. However, IBC allows for chains and peg-zones to be used to ensure finality.
IBC is a blockchain tech company that is eager to transform the supply chain of large industries such as healthcare and healthcare.
Prior attempts to attain IBC were fragmented.
Inter-Blockchain Communication (IBC) and interoperability have been around for a while. They have been discussed for many years and multiple projects have worked towards connecting different blockchain networks. The projects that champion interconnectivity were fragmented because of their different approaches, designs, and use cases.
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Tendermint core protocol Cosmos, Polkadot, and Chainlink all advocate IBC and interoperability. These solutions are a huge step towards an interoperable future.
Blockchain is the future.
Blockchain tech’s biggest enemy will be exclusivity. Exclusive networks are dangerous in times of decentralization, community-first approaches and increased decentralization. Protocols should embrace IBC and offer solutions on a scale.
Beyond integrating IBC, future protocols will be able to equip themselves with two weapons: blockchain agnostic or omnichain. This would eliminate the exclusivity element and allow them unlimited utility across all networks. This would make it easier for corporations, governments, and institutions to adopt blockchain-based solutions.
The DeFi juggernaut was a catalyst for the growth of crypto and blockchain space in 2021. Interoperability is the key to the future.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Jared Moore is Sifchain’s director of marketing. Sifchain offers an omnichain solution to decentralized exchanges. Jared is an expert in crypto, particularly with exchanges.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.