What is Interoperability?
Let's find out Interoperability meaning, definition in crypto, what is Interoperability, and all other detailed facts.
Blockchain interoperability, also known as blockchain or cross-chain interoperability, is the capability to see and share data from several blockchains. It’s beneficial because you can trade assets across multiple blockchains without the need for a decentralized, custodial exchange. Interoperability allows users to transact across different platforms thus it helps with the development of a blockchain.
Even though there are several blockchain interoperability solutions on the market, more are needed to connect different blockchains like Bitcoin and Ethereum. One of the well-known solutions is wrapped tokens (or proxy tokens). The most popular wrapped token at the moment is Wrapped Bitcoin (WBTC). However, with wrapped tokens, you’ll need to have a trusted custodian to hold your funds or develop a safe mint/burn protocol to assure a stable supply of your crypto assets.
One of the projects working on a native blockchain interoperability solution is Komodo. They developed a decentralized exchange that is compatible with 99% of cryptocurrencies called AtomicDEX. In this decentralized exchange, interoperability is created through atomic swaps that are safe exchanges of digital assets between individuals using non-custodial wallets. AtomicDEX offers native cross-chain trading, which eliminates the need for wrapped tokens.