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2. Intermediate Course

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  1. 1. What is Layer 0 in Blockchain technology?
  2. 2. What is layer 1 in Blockchain?
  3. 3. Second layer (layer 2) - what is it? 
  4. 4. Blockchain and its layers - What is layer three in Blockchain (L3)?
  5. 5. Ethereum 2.0 - What is it? 
  6. 6. Ethereum Proof-of-Stake (PoS) - what should you know?
  7. 7. Ethereum London Hard Fork - what is it ? 
  8. 8. What is the Ethereum Name Service (ENS) and how does it work?
  9. 9. Arbitrum: Ethereum scaling solution - everything you need to know
  10. 10. Polygon 2.0 - the value layer for the Internet
  11. 11. Ethereum ERC-4337 - what is it and how does this standard work?
  12. 12. What is an ERC20 token and how is it created?
  13. 13. The ERC-721X VS ERC-721 Standard – Key Differences!
  14. 14. What is cryptocurrency burning?
  15. 15. Examples of the use of WEB3 on the blockchain
  16. 16. What is Web5? 
  17. 17. Blockchain Oracle - what are oracles? 
  18. 18. Polkadot - Decentralized blockchain and DOT cryptocurrency
  19. 19. Polkadot Parachain - Next-generation blockchain
  20. 20. Interoperability in the world of cryptocurrencies and blockchain
  21. 21. What is Blockchain sharding?
  22. 22. Mainnet versus Testnet on the Blockchain. The complete guide!
  23. 23. MINA Protocol: the lightest blockchain in the world!
  24. 24. Sustainable Blockchain - Proof of Useful Work & Flux
  25. 25. Cosmos SDK: Building the Blockchain Ecosystem
  26. 26. What is cross-chain interoperability in Blockchain technology?
  27. 27. Blockchain trilemma - explanation of the problem. What is the impact on cryptocurrency payments?
  28. 28. Non-fungible tokens and NFT exchanges
  29. 29. How to make money with NFT?
  30. 30. What is the NFT licence fee?
  31. 31. NFT Gas Fee - what is it? How can you reduce your gas fee?
  32. 32. The main differences between static NFT and dynamic NFT
  33. 33. What is minting an NFT?
  34. 34. What are NFT Ordinals? A guide to Bitcoin NFT.
  35. 35. What is KnowOrigin NFT, and how does it work?
  36. 36. ERC-6551 - the new NFT standard. What does it bring to the non-exchangeable token sector?
  37. 37. What is NFT Lending all about? An innovative solution in the world of cryptocurrencies!
  38. 38. The Metaverse – a new virtual world
  39. 39. Metaverse – TOP 15 virtual reality projects
  40. 40. Technical analysis – is it worth using?
  41. 41. Trading order types: stop loss, trailing stop loss, LIMIT
  42. 42. Market Cap versus Fully Diluted Market Cap - the most important differences you should know!
  43. 43. Set up of Stop Loss and Take Profit orders
  44. 44. What are DeFi liquidity pools?
  45. 45. Real Yield in DeFi - what is this trend? What does it consist of?
  46. 46. Vampire Attacks in Decentralized Finance (DeFi): Explanation and Examples
  47. 47. What are wrapped tokens 
  48. 48. What are security tokens?
  49. 49. What are Social Tokens? 
  50. 50. Liquidity Provider Tokens (LPs). What are they, and why are they so important?
  51. 51. What is the Lightning Network, and how does it work?
  52. 52. What is Play-to-Earn (P2E) and how does it work?
  53. 53. Cryptocurrency steps - What is move to earn M2E?
  54. 54. Segregated Witness - what is Segwit Bitcoin all about?
  55. 55. What are Decentralized Cryptocurrency DEX Exchanges?
  56. 56. What is Curve Finance?
  57. 57. What is GameFi and how does it work?
  58. 58. What is Proof of Reserves (PoR)? How does it work?
  59. 59. DAO Investment: A revolution in the world of finance and investment
  60. 60. What is MakerDAO and DAI Stablecoin?
  61. 61. What is the SubDAO protocol, and how does it work?
  62. 62. How to Create Your Own Decentralized Autonomous Organization (DAO)?
  63. 63. Atomic Swap: What is an atomic swap, and how does it work with cryptocurrencies?
  64. 64. What Is Cryptocurrency Vesting? What Are Its Advantages?
  65. 65. What Is the Metaplex Candy Machine Protocol? How Does It Work?
  66. 66. What Is the BNB Greenfield Ecosystem?
  67. 67. What Is Slashing in Cryptocurrencies?
  68. 68. Royalties – What Are They? How Does This Type of Licensing Fee Work?
  69. 69. What is TradFi? The importance for cryptocurrencies!
  70. 70. What is the Real World Asset (RWA) trend in cryptocurrencies? Explanation and examples!
  71. 71. Pyth Network: a powerful oracle harnessing the power of Solana!
  72. 72. What are stables in the world of cryptocurrencies?
  73. 73. What Is Binance Oracle?
  74. 74. Shibarium: A new era in the Shiba Inu ecosystem?
  75. 75. What is an ETF? How will an exchange-traded fund on bitcoin work?
  76. 76. Symmetric and asymmetric encryption - key cryptography techniques!
  77. 77. Hedging in cryptocurrencies - great portfolio protection against risk!
  78. 78. How to create your own cryptocurrency? 
  79. 79. What is a Dusting Attack in cryptocurrencies? How to protect against it?
  80. 80. What is a Black Swan?
2. Intermediate Course 20. Interoperability in the world of cryptocurrencies and blockchain
Lesson 20 of 80
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20. Interoperability in the world of cryptocurrencies and blockchain

Interoperability is an essential part of the cryptocurrency industry. Daily, it enables networks and blockchain protocols to communicate with each other. This allows everyday users to engage even more with blockchain technology. Why is interoperability so important in the world of cryptocurrencies and blockchain technology?

New blockchain networks are being created every year. They solve the problems of specific niches, and each has specialized functions tailored to its purpose. The rise of blockchain is also a confirmation that there is no single solution that will meet all our needs. Therefore, as we realize the growth of this technology and its capabilities, connecting all blockchains and networks, becomes a necessity. And here comes another solution: interoperability.

Interoperability – definition

It is the ability of systems, devices, applications, or products to connect and communicate with each other in a coordinated manner. This includes data transfer or collaboration. Interoperability helps achieve higher performance. We distinguish:

Syntactic interoperability – includes systems that can communicate effectively with each other, using simple formats (XML and SQL) and protocols. It is often referred to as structural interoperability.

Semantic interoperability – the ability of systems to automatically exchange and accurately interpret information. It is achieved when the structure of data and its codification is uniform for all systems involved.

Cross-domain or inter-organizational interoperability – is the standardization of practices, policies, fundamentals, and requirements of systems. It focuses mainly on the non-technical aspects of interoperability within an organization.

Data exchange between applications, databases, systems, etc. is the key to the development of modern technologies.

Interoperability of blockchain technology – what is it?

Furthermore, it refers to the many methods used to connect multiple blockchains. It allows them to communicate with each other, share digital assets, databases and collaborate more efficiently. Interoperability also enables the transfer of data and assets across different blockchain networks, using decentralized cross bridges.

As most blockchains are built from different standards and codes, interoperability among them is not common. As a rule, “natural” blockchains are incompatible and transactions are performed within one of them.

In the crypto industry, interoperability can be understood as the freedom to exchange data. Current protocols cannot effectively communicate with each other. Ethereum or Cosmos, which are tier one protocols, have intelligent contracts built in, which allow secure data exchange only within their ecosystems. We have written about smart contracts here, so we will not dwell on this topic.

Not surprisingly, organizations that want to work based on blockchain are demanding its interoperability. All because of the benefits that come from cooperation in this area.

Why is blockchain interoperability so important?

Given the wide variety of blockchain ecosystems, it is essential that the two on-chain environments work together. This is a significant feature, especially for developers who want to build cross-chain/modularized applications (these applications unify the fluidity of multiple on-chain environments). Interoperability is equally significant for application developers who would like to take advantage of the unique strengths and features of each blockchain.

However, there is more to it than that. Blockchain interoperability protocols are equally valid for traditional systems that need to interact with other, different blockchains. Such an interoperability protocol is the basis for building a blockchain layer that will enable traditional back ends and dApps to interact with any on-chain environment, through a single solution.

Interoperability also solves another problem – it allows users to use a single token across multiple blockchains. What’s more – blockchains will communicate with each other, making it easier for users to access multiple protocols on multiple blockchains.

Interoperability vs. cryptocurrencies

It is worth noting that interoperability does not only refer to connectivity between blockchains. Protocols and some smart contracts are also interoperable. For example – the T3nr platform allows intelligent contracts to operate on multiple blockchains. How? The contract is hosted on the smart contract platform, then deployed and executed on different blockchain networks.

Such interoperable smart contracts allow developers to create cross-chain applications and users to conduct cross-chain transfers. What’s more, with such a solution, users can access multiple decentralized applications without having to change networks. You can read about how decentralized apps work here.

Oracles, which we have also written about. This is another protocol that can benefit from interoperability. As a reminder – oracles connect the real world, with the virtual world. They use smart contracts to do so. Decentralized oracle platforms, can connect them to multiple blockchain networks. They then allow blockchain to share data from the real world.

Interoperability is also an important element in the exchange of digital assets, between blockchain networks. The most common way this is done is through the use of cross-chain bridges. Bridges allow tokens to be transferred from one bridge, to another.

Summary

Interoperability is a key aspect in the blockchain industry. It is a kind of key to success. Interoperability reduces the barrier to entry for users who want to engage with multiple networks simultaneously.

Moreover, interoperability will increase efficiency across the cryptocurrency sector. Users will be able to move their assets quickly and flexibly between blockchains. Instead of being tied to a single blockchain, smart contracts will be able to operate across multiple networks. Interoperability should thus form the basis for the use of blockchains.