Over the past few years, Blockchain technology integration has increased within a wide number of industries. As such, there are now hundreds of diverse blockchain networks in operation all over the world. For the most part, however, most of these Blockchains are not able to communicate with each other in a way that provides efficient use for enterprise solutions. According to the World Economic Forum (WEF), the current level of blockchain interoperability is still too low for such implementations.
On April 9, the WEF published a white paper on blockchain interoperability as part of its wider investigation into blockchain deployment for supply chains. Written in collaboration with the Big Four accounting firm, Deloitte, the paper highlights the need for interoperability, and explores the extent to which different blockchains can interact with each other in their present states.
Interoperability for private Blockchain networks remains immature
According to the WEF’s findings, the blockchain interoperability problem has been primarily addressed in the context of public blockchains. Private, or so-called permissioned blockchains, have been purportedly left aside as a result.
In the report, the WEF outlined that most interoperability solutions focus on two major public blockchains — Bitcoin (BTC) and Ethereum (ETH) — while sparse development activity has been observed as it relates to permissioned blockchain platforms.
The WEF wrote:
“In public blockchains, interoperability has been in development for many years – for instance, cross-chain, sidechains, proxy tokens, etc. However, a bigger challenge and, at the same time, a much bigger opportunity exists given interoperability among enterprise-grade permissioned blockchains.”
The WEF emphasized that the current interoperability level for blockchain-to-blockchain solutions “remains immature for enterprise use.”
In the report, the WEF and Deloitte mentioned several blockchain…