One such blockchain platform was developed by luxury goods producer LVMH in cooperation with Microsoft. As customers increasingly need to be aware of the origins of what they consume, companies are seeking ways to provide as much information as possible on their products.
However, globalization can result in unethical practices and exploitative working conditions. Nowadays, raw materials for luxury goods are extracted from anywhere in the world, assembled in yet another location, and sold in one of the major cities. As a result, users can create new blockchains within minutes.Īrk has built-in support for numerous programming languages including Java, Swift, Python, and Ruby. This makes Ark accessible to people who prefer working with particular languages.įashion industry: authenticity of luxury goods Therefore, Ark automated the creation of new blockchains within the ecosystem. Ark aims to create a blockchain interoperability solution that is scalable and adaptable. This is one of the most ambitious projects in blockchain interoperability with a big community of supporters. Aion addresses this issue by using a high‑performance virtual machine and a scalable database. Most blockchain systems are not able to accommodate large amounts of data. However, Aion distinguishes itself by working toward integrating AI in its consensus model. Aion is very similar to its competition as it allows different blockchains to exchange value eliminating the intermediary. This might come useful, as interoperability is about standards. This company has connections to the government as well as major corporations in Canada. All chains that become a part of the Polkadot ecosystem are required to abandon their consensus mechanism to the Polkadot’s mechanism, but they have the freedom of developing the structure and function of their blockchain.Īion was developed by Nuco, a Canadian company specializing in enterprise blockchain solutions. Each parachain can have different characteristics and spread its transactions across the ecosystem. The Polkadot ecosystem contains parachains (individual blockchains that became part of the Polkadot environment), and a relay chain that is a central connector between parachains. The distinguishing characteristic of Polkadot is that it facilitates not only transactions but also data exchange. The idea of Polkadot is attributed to Gavin Wood, one of Ethereum’s founders. Opportunity to develop partnerships within the blockchain ecosystem.The possibility for IT staff to develop a deep knowledge of a few prominent blockchain standards instead of having a basic knowledge of many protocols.Sharing of blockchain solutions and cooperation on the ongoing development for enterprises.Easier execution of smart contracts across blockchains.Smooth information sharing across participating blockchains.Interoperability in blockchain brings the following benefits: They are often referred to as the “internet of blockchains.” Multi-chain frameworks are more complicated than open protocols. Multi-chain frameworks: Blockchains can plug into a framework to become a part of the standardized ecosystem and transfer data and value between each other.The most recognized open protocol is the Atomic Swap. Open protocols: Standardized protocols that allow blockchains to communicate with each other without intermediaries or trust processes needed.For example, the Enterprise Ethereum Alliance developed a standard version of the Ethereum blockchain for businesses.īlockchain interoperability efforts can be divided into two groups: open protocols and multi-chain frameworks.
For example, IBM and Microsoft are adopting the data standards developed by GS1 to enforce interoperability in their blockchain applications for supply chain.Īnother option is to develop standards from scratch. One possibility is to use existing standards in new blockchain applications. To combat interoperability issues, there are several standardization efforts underway.
The biggest challenge to interoperability is the existence of many blockchain networks that differ in parameters such as consensus models, transaction schemes, and smart contract functionality. You can receive information from other members, process what they sent, and respond accordingly. In an interoperable ecosystem, you can interact with users from other blockchain networks without spending resources on translation or experiencing downtime. Interoperability here means the possibility to freely share value across all blockchain networks without the need for intermediaries. The absence of standards in blockchain may give freedom to developers but it is also likely to give IT departments a headache in case blockchains lack interoperability and cannot communicate. What is blockchain interoperability and why is it necessary?