Lecture 4.0.0. Blockchain Interoperability
As at the writing of this article, the ecosystems of Ethereum, Binance, Cardano, Solana, Polkadot, and Polygon (Matic) are the leading ones in the Crypto Market. Upcoming ones include Avalanche, Algorand, Apollo, and Universal Money Instrument (UMI). Many more will be built.
Each of these Blockchain Ecosystems operate independently of each other. For instance, the Ethereum Ecosystem operates independently of Binance Ecosystem. This means a token on the Ethereum smartchain (ERC20) cannot be used or transferred to the Binance Smartchain. Likewise, a token on the Binance smartchain (BEP20) cannot be used or transferred to the Ethereum smartchain.
However, the Crypto Market is evolving rapidly. Ways to allow cryptos from one blockchain ecosystem to interact with another ecosystem have been developed and newer ideas are still being tested.
Presently, there are two main methods to get blockchain ecosystems to interact:
• Wrapped Technology
• Cross Chain Technology