Interoperability

Interoperability refers to the capacity of different blockchain protocols, such as Bitcoin and Ethereum, to seamlessly communicate and interact with each other. The objective of interoperability systems is to enable the transfer of cryptocurrencies and data across multiple chains, expanding the network effects and reach of interconnected blockchains. Enhancing interoperability can be achieved through various means, including wrapped cryptocurrencies, Layer-2 solutions, sidechains, and the facilitation of communication between smart contracts and decentralized applications (dApps) across chains.