For years, blockchain interoperability has been a buzzword and a top priority within the crypto and web3 industry. Despite numerous platforms, protocols, and projects dedicated to solving the lack of inter-blockchain communication, broad interoperability within the widening ecosystem remains out of reach.

Despite the up-and-down crypto price swings we’ve seen lately, the foundation of the digital assets sector, which includes blockchain, is much more mature, stable, and focused on solving real-world problems. We’ve also seen blockchain technology adoption within numerous industries, including supply chain management, where it’s improved efficiency by removing the need for multiple intermediaries through its transparent and traceable characteristics.

We can’t diminish blockchain’s progress over the last year or two, both within web3 and with its expansion to other industries such as real estate and healthcare. Despite advances in areas like decentralized finance, decentralized physical infrastructure networks, and tokenized real-world assets, how can we expect mainstream adoption if assets can’t be smoothly transferred between major blockchain networks like Solana (SOL) and Ethereum (ETH)?

Whether cross-chain bridges like Wormhole, layer-2 solutions like Arbitrum, interoperable-oriented blockchains like Polkadot (DOT), or interoperability protocols like Chainlink (LINK), each of these solutions tends to solve only one aspect of the problem.

Security vulnerabilities associated with cross-chain bridges and sidechains have been well-documented as they rely on complex smart contracts and often employ centralized custodians to hold funds during transfers. This creates a single point of failure that hackers can and have exploited.

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Author: Ariel Shapira