Interoperability

Interoperability refers to the ability of different blockchains to communicate and interact with each other seamlessly. Layer-1 blockchains often operate in isolation, making it challenging for applications and assets to move between different chains. This lack of interoperability limits the efficiency and utility of blockchain technology as a whole.

1. Siloed Blockchains: Layer-1 blockchains typically operate as isolated networks, making it challenging for assets and data to move between different blockchains. This lack of interoperability restricts the flow of information and value, hindering the potential for decentralized applications (DApps) and services to leverage multiple blockchains.

2. Incompatible Protocols: Each Layer-1 blockchain typically has its own protocol, consensus mechanism, and smart contract functionality. Incompatibilities between these protocols can make it difficult for blockchains to communicate and share data effectively.

3. Lack of Standardization: The absence of widely accepted standards for interoperability hampers the seamless exchange of assets and information between different Layer-1 blockchains. Without standardization, developers and users may need to implement custom solutions for each blockchain integration, increasing complexity and limiting interoperability.