The Importance of Interoperability for the Development of the European Blockchain Industry
This IDC Market Perspective examines the importance of interoperability in the widespread adoption of blockchain technology and the dangers of blockchain fragmentation. This document looks at technological developments that have led to a lack of interoperability between major blockchains and current technical and business barriers to greater interoperability. It also provides an overview of major interoperability projects and recent interoperability initiatives by major enterprise providers that hint at the future approach of the industry. It concludes with valuable insights for tech providers on how to approach interoperability. "Interoperability is an important precursor to blockchain's mass adoption because it enables smooth information sharing, easier execution of smart contracts, a more user-friendly experience, the opportunity to develop partnerships, and sharing of solutions," said Radoslav Dragov, senior research analyst for European Customer Insights and Analysis and European Blockchain lead.
Please Note: Extended description available upon request.
- Executive Snapshot
- New Market Developments and Dynamics
- Introduction
- Blockchain Interoperability Is Crucial for Mass Adoption
- Barriers to Blockchain Interoperability Are Both Technical and Nontechnical, Magnified by the Competitive Market Environment
- Disparate Architectures
- Competitive Pressure
- Challenges to blockchain interoperability go beyond technical aspects and extend to differences in governance models and data standards. Incompatible Governance Models
- Lack of Well-Established Data Standards
- Lack of a Well-Defined Legal Framework
- Breaking Down Interoperability Barriers
- Cross-Chain Solutions Aim to be More Universal Interoperability Solutions that can Link Private Permissioned and Public Permissionless Blockchains
- Example: Polkadot
- Example: Cosmos
- Some Interoperability Solutions Have a Narrower Scope and Focus on Digital Asset Exchange
- Example: Wanchain
- Example: Interledger
- Interoperability Solutions Aimed at the Enterprise Space
- Example: Hyperledger Cactus
- Example: Quant
- Solutions to Interoperability: There is No One-Size-Fits-All Approach
- Big Blockchain Providers Realize the Need for Seamless Interoperability
- Advice for the Technology Supplier
- Collaborate with Competitors to Ensure Technical Interoperability
- Embrace an Open Source Approach
- Prepare for a Multichain Future
- Work with Supranational and International Organizations to Develop and Shape Blockchain Standards
- Learn More
- Related Research
- Synopsis
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