Crypto Terms: Letter I

What is Interoperability?

Interoperability MEANING:
Interoperability - the capability to see and share data from several blockchains.
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Let's find out Interoperability meaning, definition in crypto, what is Interoperability, and all other detailed facts.

Blockchain interoperability, also known as blockchain or cross-chain interoperability, is the capability to see and share data from several blockchains. It’s beneficial because you can trade assets across multiple blockchains without the need for a decentralized, custodial exchange. Interoperability allows users to transact across different platforms thus it helps with the development of a blockchain. 

Even though there are several blockchain interoperability solutions on the market, more are needed to connect different blockchains like Bitcoin and Ethereum. One of the well-known solutions is wrapped tokens (or proxy tokens). The most popular wrapped token at the moment is Wrapped Bitcoin (WBTC). However, with wrapped tokens, you’ll need to have a trusted custodian to hold your funds or develop a safe mint/burn protocol to assure a stable supply of your crypto assets.

One of the projects working on a native blockchain interoperability solution is Komodo. They developed a decentralized exchange that is compatible with 99% of cryptocurrencies called AtomicDEX. In this decentralized exchange, interoperability is created through atomic swaps that are safe exchanges of digital assets between individuals using non-custodial wallets. AtomicDEX offers native cross-chain trading, which eliminates the need for wrapped tokens.