Interoperability is a key challenge in DLT or Distributed Ledger Technology Systems stated Bahaa Abdul Hussein. There are different platforms that use DLT. Each of the platforms has its own features and is designed in a different way. Interoperability between these platforms is a major challenge. We look at the issues involved.
DLT systems and interoperability
The following are the issues involved when it comes to interoperability between various DLT platforms:
- Technical issues
A major problem with interoperability for DLT systems is that each system has its own protocols. There are also different mechanisms they use to ensure consensus. Also, they use different programming languages for development. The data models used can also be different. While this helps them work fine as an independent platform, it makes interoperability a huge challenge. Bridging mechanisms are needed to ensure interoperability.
- No standardization
The major challenge involved is the lack of standardization. When there are standards, then it make it easy to create systems that can work with each other. The absence of standards makes interoperability a major issue. Protocols need to be evolved as also data formats and interfaces for communication. Their absence is leading to custom solutions having to be developed, which entails higher costs. There is thus a need for standardization and better collaboration between players.
- Security
Interoperability would necessitate cross chain transactions between different DLT systems. This creates the possibility of a security risk. The privacy of data may also be impacted. It is a significant issue that has to be addressed because security has always been a key feature of DLT. Newer solutions have to be developed that can ensure interoperability without compromising on security.
- Synchronization
With multiple DLT systems, synchronization between the systems becomes a challenge. The various network need to co-ordinate with work together. It calls for different players to come together and collaborate.
- Scalability
Another interoperability issue is scalability. When a DLT platform has to be scaled, it would impact interoperability. Solutions are needed to address scalability of systems.
Conclusion
The challenges involved in interoperability between different DLT systems are many. However, these challenges are not unsurmountable. Standardization, collaboration between organizations, and the use of middleware can help meet these challenges. It is time for the different players to come together to work in interoperability. If the interoperability issues are addressed, then it would help in ensuring a more connected DLT ecosystem in the future.
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