Why does universal interoperability unlocks the long term potential of blockchain technology? Increasing blockchain interoperability will increase efficiency, as well as the potential for growth in the space.
Take a moment to consider where the most common problems with systems in large organizations exist today. It is miscommunication or lack of communication. If one system cannot interact with another system then the room for error and potential threats to IT systems multiplies. Therefore, transferring knowledge between different systems becomes paramount for driving efficiency in the future.
Data that is stored by different systems operating under one roof is both unproductive and drives up the costs of running an organization.
The problems with isolated datasets
When data isn’t connected it is difficult to analyze, interpret, use and exchange. This leads to a slowdown of vital processes and progress and the creation of backlogs.
It also leaves IT systems vulnerable. Consider our healthcare systems throughout the world. The interconnected state of all systems within a healthcare setting is crucial to managing patient care. Often they suffer from isolated datasets which cause long-term issues in the provision of vital public services.
Assessing the potential of interoperability is key to developing future applications that could improve the lives of millions of people. Collecting data is important but transferring that data into meaningful analysis is where technology has the potential to tackle some of the biggest issues facing the planet today.
Not only does this require data infrastructure that is connected, but it also needs to demonstrate that it is faster, more reliable, and more trustworthy than any existing technology used by organizations today.
What is blockchain interoperability?
Interoperability was not just a buzzword in blockchain media circles. It is all positioned as a major component of mass adoption for the future.
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As a feature it allows users of different blockchains to transfer data between them. Not only do users want to exchange digital assets from one blockchain to another, but they also want to do this seamlessly and without having the worry of security.
Individual blockchain networks are already impressing the masses with millions of transactions daily. With increased interoperability, applications will be able to create new customizable Web3 services.
Future digital industries will depend on secure communication
The ramifications of using connected blockchains to improve existing digital enterprises are enormous. Taking a closer look at manufacturing one can’t help but point to the gaps in productivity.
Gone are the days when it is acceptable to exploit the most vulnerable suppliers, materials, labor, and markets. Adhering to more ethical consumerism is becoming a key priority for the younger generation.
Strengthening structures with blockchain interoperability
So how can interoperable blockchain technology strengthen the manufacturing industry? The right blockchain infrastructure will guarantee transparency, and a wholesome approach to data management, and facilitate new ways to operate even our most complicated supply chains.
As there are multiple stakeholders at every stage of the buying journey, supply chains will need to seamlessly communicate with each other, and not every distributor will be working with one blockchain solution. Therefore, the infrastructure itself needs to allow for communication between chains and be capable of tailoring the usage of the technology for different industries.
Blockchains of the future will speak to each other
Communication is often undervalued as a skill set in the world of Web3. However, the very foundation of blockchain problem-solving capability is their ability to communicate data effectively. By doing so, the technology can provide enhanced knowledge, improved products, and trustworthy services for the public.
The lack of communication between the chains will have a negative knock-on effect. Interoperability would allow for a more streamlined experience, giving greater control to the end user and encouraging longer-term loyalty to the industry as a whole.
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