Opinion: A Fresh Approach to Interoperability: Time to Rethink and Start Anew
Disclaimer: The opinions expressed in this article are solely those of the author and do not reflect the views and opinions of the editorial team at crypto.news.
Imagine this scenario: you’re at a new bank, ready to deposit your savings. As you fill out the forms, you stumble upon a news article about a massive $624 million theft resulting from a devastating exploit in the bank’s computer system.
Naturally, you start to consider other banks that might offer a safer alternative. But here’s the catch – it’s not that simple. You have no way to distinguish or evaluate the back-end systems of different banks, and similar system vulnerabilities have led to thefts totaling a staggering $2.9 billion between 2021 and 2023.
It’s understandable if you’re feeling hesitant about your next move.
Believe it or not, the above scenario is true. However, it’s not traditional banks that have experienced these high-profile breaches; it’s cross-chain bridges.
These breaches have been caused by various factors, ranging from unforeseen complications in design to unexpected vulnerabilities and even outright fraud. Regardless of the cause, these incidents have devastating consequences for those relying on cross-chain solutions and tarnish the reputation of blockchain technology as a whole.
However, if we look beyond the sensational headlines, we realize an important truth: cross-chain infrastructure is essential infrastructure. As long as we believe in the potential of blockchain to create positive change and strive for mainstream adoption, cross-chain solutions are here to stay. So, let’s take an honest look at the current state of blockchain interoperability.
First and foremost, we need to prioritize core infrastructure over individual products.
For those unfamiliar with the concept, blockchain interoperability is the solution to the fragmented and isolated nature of different blockchains. Trustless blockchains cannot communicate with one another without intervention, which is where cross-chain solutions come in. These solutions enable seamless data flow between different blockchains. Given that many innovative and impactful projects are now being developed on blockchains other than Ethereum L1, interacting with cross-chain solutions has become essential for users of dApps and DeFi protocols.
Unfortunately, the current state of blockchain interoperability is marked by fragmentation and incompatibility. Numerous interoperability projects compete for dominance, creating custom cross-chain products with varying levels of security and reputation. This situation only serves to complicate the blockchain landscape further. Moreover, this incompatibility makes it challenging for users, businesses, and regulators to assess the security of different alternatives, hindering the widespread adoption of blockchain technology.
To address this issue, we need a shared framework for interoperability.
Blockchain interoperability cannot be the sole responsibility of a single project; it requires a collective effort from the industry. Instead of adopting a “every man for himself” approach, we must come together and establish a clear and agreed-upon way to transmit, receive, and verify data across different blockchains.
Contrary to some concerns, adopting a shared framework for interoperability does not threaten the business models of existing interoperability projects. Instead, it establishes a secure foundation of core infrastructure, allowing projects to build unique products that cater to different use cases. This differentiation is what truly matters.
In the traditional finance world, thousands of banks have built successful businesses with loyal customers by relying on secure, shared infrastructure. Similarly, web2 businesses worldwide rely on the Internet protocol suite, a shared framework that enables seamless data communication. A shared framework for interoperability, complete with architectural guidelines and interface definitions, is the way forward. Blockchain interoperability must be considered core infrastructure before being developed into individual products.
Read more: Crypto’s future hinges on solving the privacy-transparency conundrum | Opinion
About the author:
Temujin Louie is a communications specialist with over a decade of experience in driving the adoption of transformative digital technologies. His journey into blockchain began in 2012 during his graduate studies at the London School of Economics and Political Science, where he explored the impact of Bitcoin on existing power structures. Temujin is an expert in blockchain interoperability, with a unique talent for simplifying complex technological concepts. He has served as a bridge between the tech world and the general public, offering valuable insights to both startups and multinational enterprises. Since joining Wanchain in March 2021, Temujin has been serving as the CEO, leveraging his expertise to drive the company’s success.
