Five Key Takeaways About the Future of Blockchain Interoperability
Yifan He, CEO of Red Date Technology, is joining Jonathan Padilla, former Head of Blockchain Strategy at PayPal and co-founder of Stanford’s Digital Currency Initiative, to discuss blockchain interoperability and the possibilities for blockchain collaboration in the immediate future.
Here are five key takeaways from the fireside chat:
1. What is interoperability? How does the BSN handle the interoperability issue?
Many IT systems work on interoperability issues, like SWIFT, making all commercial banks interoperable in terms of exchanging information and data. Another example of resolving interoperability is the Internet. The Internet has created a standard protocol, such as TCP or HTTP so that users can communicate with one another using the common protocol. To achieve interoperability, blockchain protocols will go through the same process.
The BSN created an Interchain Communications Hub (ICH) to enable the secure exchange of data, assets, and information between chains. In the meantime, each chain will keep its transactions, consensus, ledgers, business data, and DApp information. In this way, BSN dismantles chain silos.
2. What is the mission of the BSN?
The BSN will keep testing the best way to realize interoperability. Ultimately, a common protocol will be established on the BSN and then users can install it into any web server with different SDKs. There is no consensus, no smart contract, and no virtual machines. Any IT system can connect to other IT systems to form specific chains.
3. What are the most critical impacts of blockchain technology in ten years?
The Internet will consist of two layers in the next ten years.
The first layer is the current Internet. Sixty percent of the traffic on the Internet goes through the peer-to-peer protocol, enabling the connection between two IT systems.
Another layer will handle all broadcasting communications, allowing multiple IT systems to broadcast and receive data simultaneously, similar to conference calls, greatly improving data transmission efficiency. Meanwhile, the second Internet layer will encourage many systems to protect data privacy. Giving people control over their own data is another critical feature of the second layer. For example, private keys can be used to manage data in a bank or government system.
4. What can organizations like the BSN and others do to educate consumers as people become more aware of data self-sovereignty?
Most cyber citizens are used to sharing data online and don’t care where the data is or what websites do with it. Nonetheless, blockchain technology can improve data management.
Here’s one example. Every country has a motor vehicle department, and all car data is centralized. Selling a car or updating a license requires a trip to the motor vehicle department, which is inconvenient and inefficient. The data transmission will be more efficient if all car data is turned into NFTs with different sets of data controlled by different private keys. To increase transparency, all data will be saved on blockchains.
And it’s what the BSN has been working on. The BSN recently rolled out an NFT platform called the BSN Decentralized Digital Certificate (DDC) Network in January 2022. The BSN DDC Network will offer a diverse, transparent, and reliable one-stop shop for businesses to mint and manage their own NFTs without relying on cryptocurrencies. The biggest market lies in certificate and account management, where data ownerships are required.
5. What are the potentials and benefits of blockchain technology in emerging markets?
Many banks in many countries are using the 1970s-era system. It will take at least twenty years to update the obsolete systems. These countries are eager to reap the benefits of disruptive technologies in order to improve their current circumstances.
Therefore, emerging markets will be the first adopters, and it will be much easier for blockchain technology to penetrate emerging markets, bringing new opportunities to places where technology development is lagging.