Among the users who love to use the latest options in the field of technology, the blockchain is known as the latest option. For the new users, it may be something new, and they may not be aware of its usage, but those who are in this field know the use of this technology in various fields and understand its importance as well. Many blockchain enthusiasts feel that it is high time that service providers have interoperable blockchains in the market. While this seems like a feasible option in the near term, it has many challenges. To begin with, current issues include loss of important data and loss of funds during international transactions. All of these have to be covered up with new patches that uniformly work on all crypto platforms. Apart from that, the entire lots of cryptocurrencies have to maintain some sort of uniform coding so that they can provide similar security features for the users. In this way, users will feel comfortable to switch from one currency to another without any hassles. The security concerns are grave and in the interest of users as well as companies that offer the currency and their use on various platforms.
SIA partners with tech giant Quant Network
Many companies in this era are interested in the use and development of this technology. In a recent development, SIA, one of the leading payment providers in Europe, has partnered with Quant Network and conducted several interoperability tests with cross-blockchain transactions. All this was done successfully, and it is mainly designed to facilitate data transfer between different blockchains. With such advanced frameworks, it will be easy for developers to implement cross-platform applications into the market. In this way, banks and other financial institutions can allow cross-blockchain transactions without facing any issues.
Markets are not yet ready for cross-blockchain transactions
Even though many solutions exist today with regards to cross-blockchain transactions, it is still not up to the mark. Most of them still work on some centralized platforms, and they have to be devised into decentralized solutions in order to fit them perfectly into the blockchain model. The financial institutions have to open up their systems and make it easy to share information between different platforms. This is also beneficial for processing payments in a quick time, and it will also improve efficiency by a considerable margin.
Issues with cross-blockchain systems
There are several issues associated with the current cross-blockchain systems that are available in the market. The biggest challenge comes with making such transactions cheaper and faster. When it comes to cost issues, it depends on various factors as the cost of KYC for cross border transactions are very high, with several banks and financial institutions. In this regard, a uniform fee structure will be beneficial to cut down costs associated with cross-blockchain transactions.
Speed of transactions
The speed of the transactions also depends on various factors. Its biggest hurdle comes with the combined efficiency of all the blockchains included in the system. The overall speed depends on the lowest-performing system in the chain. It can drag the performance of all other blockchains involved in the system. In this way, a standard has to be reached before implementing interoperable blockchains across various exchanges. We have already seen various outages when prices of certain blockchains move by a huge margin. In this situation, managing interoperable blockchains still look like a distant dream. However, with constant up gradation in technology across various platforms, it may become possible in the future.