Algorand ($ALGO), Bitcoin ($BTC) – Lisk moves one step closer to implementing its blockchain interoperability solution

At its blockchain developer event last June, LiskThe research team spoke to attendees about the progress they have made toward completing an interoperability solution that will allow apps on their blockchain to communicate with other apps on the blockchain network.

Now that the official launch of the Lisk blockchain application platform is reportedly approaching, the team is one step closer to deploying a scalable interoperability solution in its ecosystem. Here’s what it means for developers building apps in the Lisk ecosystem, as well as for the future of blockchain technology.

Blockchain technology is full of potential, but lack of interoperability makes it difficult to scale

Blockchain technology offers a secure way to digitally transfer assets, secure sensitive data and track digital and physical items as they change ownership. Because it is distributed, data on the blockchain cannot be changed. Using it to store data or complete financial transactions is a way to protect against tampering and fraud.

But to fully exploit the potential of this new technology, some experts say it must overcome a key roadblock: lack of interoperability. There are tons of different blockchains from well-known networks such as Bitcoin BTC/USD and Ethereum ETH/USD to lesser known recent entries such as Algorand ALGO/USD and Phantom FTM/USD.

Right now, apps built on any of these blockchains cannot exchange data with apps built on other blockchains without a bridge. For end users, this means that the crypto wallets and other apps built on Ethereum cannot connect to the wallets or apps they use that were built on Fantom.

Achieving interoperability will make cross-chain communication and transactions possible

A few networks have begun to explore interoperability solutions to fix this and make navigating blockchain ecosystems as seamless for users as navigating the internet today. So far, they tend to involve cross-chain bridges that effectively lock a digital asset on one chain, while minting an identical asset on the new chain.

Other networks develop interoperability solutions that work within these networks. For example, in the Polkadot system, parachain technology makes it possible to buy, sell and transfer digital assets within that ecosystem. However, it will use cross-chain bridges to transfer to other networks outside of that ecosystem.

Lisk aims to provide an open source, interoperable Blockchain development platform

While other networks – namely networks such as Polkadot and Cosmos – have been working on interoperability solutions, Lisk has taken a slightly different approach, using sidechains to develop Blockchain Applications. That’s where Lisk says the interoperability solution comes in.

Using a form of side chain technology, Lisk proposes an ecosystem consisting of a main chain and side chains. These side chains are secondary blockchains with their own consensus protocols that can be connected to the main blockchain via a two-way peg.

Because they use their own protocols, there is less pressure on the main chain as transactions move through the ecosystem. That’s because the main chain simply validates and tracks each side chain and forwards messages from one side chain to another. The processing itself takes place inside the side chains, which enables faster and more efficient processing without burdening the main chain.

Also, there is no limit to how many sidechains can be connected to this mainchain, making it flexible and scalable to adapt to a wide number of applications. Using sidechain also allows developers to be more flexible with the implementation of their own logic instead of relying on the logic of the mainchain.

Development of the Lisk interoperability solution close to the finish line?

With the publication of all research done so far, the team has officially achieved their fourth milestone which is to prepare and publish the core and support Lisk Improvement Proposals (LIP) for the development of the Lisk Interoperability Solution. Now it is working on its next milestone to achieve interoperability within the Lisk network.

During this phase, the team tackles issues such as stimulating the role of the mediator, shortening the time to completion in the consensus mechanism, and ensuring that end-user access to the Lisk ecosystem is as seamless and secure as possible.

Once this milestone is achieved, the team reports that it will work on Lisk bridges that will extend the network interoperability protocol to third-party blockchains, effectively creating the universally interoperable blockchain solution that the technology needs to realize its full potential.

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