Interoperability – What the Future Holds?

FuturoCoin provides a decentralized blockchain platform capable of adjusting to interoperability issues. This article analyses the current state of interoperability. It provides an insight as to what awaits.

2020 marks the 12th year of Blockchain as a peer to peer ledger. Blockchain has seen constant development. Gartner’s IT Symposium/Xpo 2019 underlined that 90% of current enterprise blockchain systems require upgrades every 18 months to remain competitive. Current 2020 trends underline a link between interoperability and success. A lack of interoperability limits mass adoption.

Interoperability – What is it?

Interoperability is the ability to distribute value across blockchain networks with different ecosystems without intermediaries. The aim is to develop a decentralized ecosystem. Currently, cross-communication between blockchains is troublesome. The majority of blockchain platforms are unable to produce verifiable signatures – a miscommunication persists.

Each blockchain platform is developed by a different team of developers that determine its direction, purpose, and scope. The two most commonly used blockchain platforms (Bitcoin and Ethereum) use different technical languages. These technical dissimilarities include: smart contract functionality, consensus models, and transaction schemes.

Interoperability – Implementing Standards and Finding Solutions

To solve interoperability issues, TierNolan created a preliminary solution by inventing atomic swaps in 2013. Since then, atomic swaps have blossomed. They now provide peer-to-peer trading of two cryptocurrencies without the need for trusted third parties. That said, atomic swaps still suffer from slow transfers. Bitcoin swaps may take over an hour to finalize. During that time, prices may fluctuate. Additionally, for atomic swaps to work, each respective cryptocurrency must have the same hashing algorithm.

Bodies such as GS1 are developing universal communication standards to overcome interoperability problems. IBM and Microsoft, among other companies, have shown a willingness to accept these standards for their blockchain applications.

To add, the Enterprise Ethereum Alliance (“EEA”) has developed a pre-certification sandbox known as EEA TestNet. This sandbox allows for the standardization of ethereum forks to achieve interoperability. By the end of 2020, the EEA plans to have a complete certification program ready for mass adoption.

The link with FuturoCoin

FuturoCoin has been modeled in a decentralized manner – allowing the owner to have full control over the coin. It eliminates the government and the banks. FuturoCoin provides room for interoperability developments as FutroCoin’s source code is sub-derived from Dash. It uses 11 different hashes for hashing blocks for a more decentralized network.

Final Observations

By 2025, 10% of the World’s GDP will be based on blockchain applications. PwC conducted a survey on interoperability. 28% of the 600 executives surveyed stated that the interoperability of systems is the key to a successful blockchain platform.

As mass adoption trends increase, the push for interoperability becomes more apparent. The push for universal standards and a desire for corporations to solve interoperability issues will decide success and mass adoption in the future.

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