Opinion Interoperability reconsidered back to square one

Disclaimer: The opinions expressed in this article are the author’s own and do not necessarily reflect those of the crypto.news editorial team.
Imagine this: you’re at a new bank ready to deposit your savings. While filling out the paperwork, you stumble upon a news article detailing a staggering $624 million theft due to a severe exploit in the bank’s computer system.
You might be inclined to seek out a safer banking option, but the reality is not so simple. It’s challenging to distinguish and assess the security of each bank’s backend systems, especially when thefts totaling $2.9 billion have occurred between 2021 and 2023 due to similar issues.
Understandably, you might be hesitant about your next steps!
Surprisingly, these high-profile breaches haven’t targeted banks but cross-chain bridges.
Breaches in cross-chain bridges have stemmed from various causes, ranging from complex design flaws to hidden backdoors and even outright fraud. Regardless of the reason, these incidents have had a devastating impact on users relying on cross-chain solutions and have tarnished the reputation of blockchain technology as a whole.
However, beneath the sensational headlines lies a crucial truth: cross-chain infrastructure is fundamental infrastructure. As long as you believe in blockchain’s potential to bring positive change and aim for mainstream adoption, cross-chain solutions are here to stay. Let’s take an honest look at the current state of blockchain interoperability.
Prioritize core infrastructure over products
For those unfamiliar, blockchain interoperability is essential for addressing the fragmented and isolated nature of blockchains. Since blockchains operate as trustless systems, they cannot communicate with one another without intervention. This is where cross-chain solutions play a vital role by enabling seamless data flow between different blockchains. For users of dApps and DeFi protocols, interacting with cross-chain solutions has become necessary as many innovative projects are moving away from Ethereum’s L1 blockchain.
Currently, blockchain interoperability is characterized by fragmentation and incompatibility. Numerous interoperability projects are competing for dominance, creating custom cross-chain products of varying security and reputation that only complicate the blockchain ecosystem. This lack of compatibility inhibits users, enterprises, and regulators from evaluating the security of each solution, hindering the widespread adoption of blockchain technology.
The solution lies in establishing a shared framework for interoperability.
Blockchain interoperability cannot be the responsibility of a single project; it requires a collective effort from the industry. Instead of pursuing individual interests, stakeholders must collaborate to determine how data should be transmitted, received, and verified across different blockchains.
Implementing a shared framework for interoperability does not threaten existing projects’ business models but provides a secure foundation for core infrastructure. This foundation allows projects to develop unique products tailored for specific use cases while adhering to standardized architectural guidelines and interface definitions.
In traditional finance, thousands of banks have thrived using shared infrastructure, and web2 businesses rely on the Internet protocol suite for seamless data communication. Similarly, blockchain interoperability demands a shared framework that outlines clear guidelines and definitions. Prioritizing core infrastructure over products is crucial for the future of blockchain interoperability.
Learn more:
The future of cryptocurrency depends on solving the privacy-transparency dilemma | Opinion
Temujin Louie
Temujin Louie, a communications specialist with over a decade of experience in driving digital technology adoption, delved into blockchain during his graduate studies at the London School of Economics and Political Science in 2012. His expertise in blockchain interoperability allows him to simplify complex technological concepts into engaging narratives. Serving as a bridge between the tech world and the public, Temujin offers unique insights to tech startups and multinational enterprises. As the CEO of Wanchain since March 2021, Temujin continues to champion blockchain interoperability.