Interoperability is often passed over in the blockchain conversation, yet it is integral to the technology’s success. Few people understand its value in blockchain’s success.

Here’s what you need to know about blockchain interoperability.

What is blockchain interoperability?

Blockchain interoperability refers to the ability of blockchain platforms to connect and transfer data between one another. Interoperability prevents platforms from becoming siloed from one another and mitigates the chances of one blockchain domineering the market.

As Richard Gendal Brown puts it, “I want to ensure that the solution I deploy can work well with solutions other people deploy, even if we’ve made very different technology choices.”

It should be simple, but as with most technology, blockchain interoperability isn’t as easy as it seems. On one level, the technology is still yet to mature. On another, there is the issue of competition: companies in the blockchain sector, naturally, are in competition and don’t want to risk losing clients.

It’s not an option. It’s a requirement.

Too often, blockchain interoperability is seen as an ‘optional’. In the ideal blockchain climate, interoperability will be a requirement. However, the hesitation of businesses to extend into interoperable platforms is understandable.

Blockchain interoperability poses a very present threat: if they’re not tied to your platform, they’ll leave whenever something better – and/or ultimately cheaper – comes along.

The need for interoperability goes much further than competition and dissatisfaction. If a company were to face tough times, the businesses using their software would then be forced to overturn their entire blockchain systems for a new product. With interoperability, this wouldn’t happen.

Interoperability provides freedom of choice, and, in turn, will encourage companies to have more trust in those offering the solutions. Without interoperability, blockchain will never reach its true potential, because companies will lag behind and lack trust in any of the solutions being offered. No company wants to be tied to one blockchain protocol or one platform, for business longevity.

All of Blockhead Technologies’ platforms are blockchain interoperable, because we recognise the need for flexibility. Our platform, STAMP, tracks and analyses company data, anything from fuel usage to supply chain data. You can find out more about STAMP here or contact us here for a demo.