We saw the first-ever implementation of blockchain’s use case in the finance niche about a decade ago. Since then, the technology has covered different horizons and one of the latest buzzes happens to be Hyperledger, which is quite well recognized for its permissioned nature. In this article, we’ll explore deeply as to how Hyperledger facilitates interoperability in the industry.
Since blockchain favors decentralization and is not confined within a particular geographical boundary, people from all over the world can use it. However, it is worth noticing that not all of them use the same blockchain venture. Some might be using, let’s say project X, for privacy while others might be using project Y for maintaining public health records. Over the decade, the use cases have increased and that is where interoperability comes into play. It allows people using different blockchains to avail mutual benefits.
Whatever we discussed above is from the perspective of a layman. Let’s explore a technical aspect as well. The running of every blockchain venture depends upon logic execution, which is delivered with the help of smart contracts/chain codes. Since they need to be written in different languages, depending upon the underlying technology stack of the venture, most of them cannot be used on another network. This situation creates a deadlock and demands interoperable solutions where developers only have to create a single smart contract, executable across all networks, thus reducing the programming effort.
Moreover, with the help of interoperable solutions, different blockchains won’t have to rely on intermediaries, hence diminishing the risks and any extra cost incurred on the customers.
There are dozens of possible approaches in this regard, but we will only focus on the most imminent ones, with clear prospects of disrupting the industry.
Firstly, it is worth noticing that blockchain has gone way past mere cryptocurrencies. As of yet, any item with an ownership tag is considered an asset. In order to enhance interoperability, we could allow the trustless transfer of assets from an owner on network B to another owner on Network C.
Secondly, as mentioned above, the implementation of cross-chain smart contracts would not only reduce the programming efforts on the part of developers, but it would make the entire system more robust. The communication between multiple blockchain networks is the key to achieving a greater good in this industry. Without collaboration, decentralized technology will become centralized.
Lastly, we could also develop some specialized chains. A variety of ventures could use such solutions in order to work together and form a consortium.
Let’s have a look at three of the most distinguished Hyperledger projects focusing on interoperability among blockchains.
It is primarily designed so that user accounts can share a global namespace and the distributed ledgers can become interoperable, hence assisting them to transfer value from one network to another.
It offers a library which different projects can use in order to execute smart contracts across multiple chains. It facilitates state management and advanced transaction execution as well, thus simplifying the entire procedure for developers.
When it comes to identity sharing among blockchains, this tool stands out. Basically, it allows P2P interactions among different networks, rooted to Aries. Programmers can make use of this open-source tool to create messaging apps and conduct any type of P2P transaction.
It is quite evident that the need for blockchain interoperability is an imminent requirement as of now and the community must take even more measures to ensure that all the industries are able to collaborate. However, the pioneering solutions in this regard have been rolled out by Hyperledger and since they are working quite efficiently, developers could take help from these open source tools as well.
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