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Importance of Blockchain Interoperability for Growing dApps

Interoperability is a common term in blockchain technology. But, the significance of this term is still unknown. It merely means a program to exchange information with other programs in an efficient way. But, in the blockchain industry, it has new meaning and significance as there are 1,600 projects executing on multiple stand-alone protocols.

In 2018 reports, there is no interoperability and processes to communicate between different blockchain platforms in Deloitte, a big four consultancy firm. Its absence led to challenges in the adoption of blockchain technology and its applications.

In the Blockchain world, interoperability defines as an ability of blockchain protocols and applications to communicate and work with each other seamlessly. It is hard to move the transaction from one chain to another. A third-party app, also known as cross-chain interaction, is required to resolve the issue.

Interoperability is not essential to purchase or send cryptocurrency to another account. But, it plays a significant role in developing decentralized applications (dApps), smart contracts, and multi-chain solutions.

The cross-chain compatibility can help in increasing the user base in dApps in which all the digital assets can be purchased and traded within the app. Hence, it allows deploying the entire cross-chain dApp ecosystem.

In some banks, it is allowed to use only one currency. They restrict all international transfers as well as exchanging of payments in different currencies. It makes the business limited. It is a similar condition to blockchain projects. Therefore, many protocols realized the importance of dApps and their interoperability solutions.

Interoperability is one of the factors that help in the adoption of dApp and hence, helps in growing the technology. Metaverse is building interoperability standards by DNA chain solution.

This solution can help in deploying any blockchain platform. There are many such projects with similar working. But, DNA is a unique project to enable developers to develop and use dApps on DNA with particular infrastructure for functioning cross-platform. That is how it makes the platform completely interoperable.

For the global adoption of blockchain technology, it is an essential step. This solution helps many daily users to attract towards the blockchain dApps.

Vivaan Shah: Vivaan Shah is a professional Forex and Cryptocurrency Market Analyst with a background in Finance. He has worked in several foremost publications before getting into NameCoinNews. He has been involved in the cryptocurrency for years. He loves to spend his free time in recording podcasts for crypto beginners. He also enjoys to explore cryptocurrency products.