Blockchain interoperability: the state of heterogenous blockchain-to-blockchain communication

Abstract

Blockchain technology has been increasingly adopted over the past few years since the introduction of Bitcoin, with several blockchain architectures and solutions being proposed. Most proposed solutions have been developed in isolation, without a standard protocol or cryptographic structure to work with. This has led to the problem of interoperability, where solutions running on different blockchain platforms are unable to communicate, limiting the scope of use. With blockchains being adopted in a variety of fields such as the Internet of Things, it is expected that the problem of interoperability if not addressed quickly, will stifle technology advancement. This paper presents the current state of interoperability solutions proposed for heterogenous blockchain systems. A look is taken at interoperability solutions, not only for cryptocurrencies, but also for general data-based use cases. Current open issues in heterogenous blockchain interoperability are presented. Additionally, some possible research directions are presented to enhance and to extend the existing blockchain interoperability solutions. It was discovered that though there are a number of proposed solutions in literature, few have seen real-world implementation. The lack of blockchain-specific standards has slowed the progress of interoperability. It was also realized that most of the proposed solutions are developed targeting cryptocurrency-based applications.