Blockchains need an interoperable standard of communication, easily integrated into every network, so that the transition from Web2 to Web3 can take place. This view was expressed in an interview with Cointelegraph by Ryan Lovell of Chainlink Labs.
According to the head of markets at the decentralised oracle provider, blockchains will require functional interoperability similar to the role the Internet provides for computers.
“To realise a scalable, fully functional ecosystem, an open communications standard such as TCP/IP is needed, which currently effectively serves as the Internet’s connection protocol,” the expert said.
Lovell stressed that blockchain functional interoperability has “crucial importance” for financial institutions seeking to tokenise real-world assets. In his view, this ensures that liquidity will not be “suffocated” by existing solely in a “disparate ecosystem”.
The founder and CEO of the lending platform Umee, Brent Xu, is convinced that to ensure interoperability of blockchains, institutions must implement proper risk-management systems.
According to him, attempts to “cut corners” on security risk creating something like the 2008 mortgage crisis repeating in the crypto industry.
As reported, cross-chain hacks Ronin ($625m), Nomad ($190m) and Harmony ($100m) were among the biggest in the industry in 2022.