At this point, it is known that blockchain networks running on their own waste incredible potential to develop a greater number of aspects, while missing opportunities for projects. Algorand is on its way to interoperability, to connect with other ecosystems, and encourage bigger technology adoption.
Blockchain networks in a technological ocean
Blockchains like Algorand are incredible for developing aspects within the blockchain universe, thanks to their own characteristics. But the problem arises when adoption is required for decentralized applications that require more interconnection with other ecosystems. In other words, if a blockchain could not interact with other ecosystems, it would be like an island floating in a huge ocean, disconnected from the outside world.
Regarding this, the so-called «Bridges» began to be developed, which are bridges to interconnect ecosystems. These are a very interesting tool for future developments, since they give decentralized applications greater interaction.
Another amazing advance is related to oracles, which allow making connections to obtain data outside the chain. This is a subject that can be exploited by applications that require certain information from the outside, such as weather data. The next step will undoubtedly be to connect blockchains with each other, even if their protocols differ.
Benefits of interoperability
Let’s imagine that we want to use an application developed in a certain ecosystem, we currently face the issue that we can only interact with projects generated within that environment. Given this, the need arises to develop tools that allow us to interconnect between blockchains, even when their protocols are different.
In this way we can think of a greater expansion of blockchain ecosystems, which would no longer work in isolation, but on the contrary, could interact jointly. It is expected that in the near future there will be a greater number of tests to go this path.
Algorand and interoperability
Algorand, as a next-generation blockchain, is very aware of the issue of interoperability. This is why it is making strategic associations with bridge developers. This will allow the applications that are deployed on the platform to include interconnection options in the future.
The biggest problem developers face is articulating methods that combine tools, with the aim of providing an efficient solution to the articulation of protocols. The biggest drawback is the security, since cases of hacking of these interconnection bridges have been reported, so it is an issue that carries high importance.
Algorand’s features make it an ideal option for projects that require smart contracts, thanks to how powerful these are on its platform. This is why interoperability is crucial, to be able to carry out transactions with other chain protocols, which may be useful for different applications and use cases.
Algorand has developed a robust ecosystem that includes the most diversified projects, crossing fields such as DeFi, NFTs and smart contracts. Generating the conditions needed to be able to provide greater interconnection, with an optimal security framework, represents a great milestone for the entire blockchain universe in general.
Blockchain interoperability is the goal pursued by the ecosystems of this universe, in order to achieve interconnection between blockchains, even when their protocols are different. Algorand is committed to the development and strategic partnerships in this regard, in order to take advantage of all its characteristics and achieve a greater expansion of the ecosystems.