During the past few years, blockchain or distributed ledger technology (DLT) has been adopted by a large number of companies from several major industries. There are currently hundreds of different DLT platforms being operated across the globe.
Most of these blockchain-enabled networks are unable to effectively and efficiently communicate (or share data) with each other. The World Economic Forum (WEF) recently noted that the present level of blockchain interoperability is far too low for developing robust enterprise-grade applications.
The WEF has released a whitepaper that specifically covers the challenges associated with implementing DLT interoperability. The organization notes that the paper is part of an extensive research project that looks into the feasibility of blockchain-based solutions for supply chain management.
Authored in collaboration with leading professional services firm Deloitte, WEF’s whitepaper emphasizes the need for blockchain interoperability. It covers the extent to which current DLT platforms are able to communicate with each other.
The paper points out that the DLT interoperability challenge has mainly been addressed in the context of public blockchain networks. Private (permissioned) DLT chains have been ignored for the most part, the paper argues.
The WEF states that the majority of existing interoperability solutions tend to focus on the Bitcoin (BTC) and Ethereum (ETH) blockchains, which are the world’s largest DLT platforms.
There’s not much meaningful interoperability development work going on otherwise (for other blockchains), the paper reveals.
The WEF noted:
“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 organization said that the present level of interoperability…