Blockchain interoperability is the next step in the evolution of blockchain technology. Blockchains by design are built to serve the ecosystem they have been developed for. For instance, Ethereum only supports applications built on its chain.

Interoperability allows blockchains to leverage their best features while providing integration into legacy systems.

Here are the best seven projects rapidly advancing blockchain interoperability.

1. Cosmos

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Cosmos prides itself as the “internet of blockchains.” Cosmos is an ecosystem of applications and services, built for decentralized and distributed systems.

Cosmos delivers blockchain interoperability using the inter-blockchain protocol (IBC). The IBC protocol supports a suite of cross-chain applications. This enables users to freely exchange data and assets over blockchains. Cosmos currently has a suite of over 270 applications and services in its network. Some of the popular blockchains supported include Binance Chain, Crypto.org, and Terra.

Cosmos offers a high-end blockchain software development kit (SDK) for blockchain developers. This allows developers to build innovative applications in the Cosmos hub that contribute to interoperability.

The ATOM token is Cosmos’s native token. Holders can stake ATOM to support blockchain activities in the Cosmos Hub with rewards. Staking rewards are primed to grow exponentially with Cosmos set to introduce inter-chain staking and an inter-chain decentralized exchange (Gravity DEX).

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Chainlink is a Web3 platform offering oracle services that can power smart contracts on any blockchain. Chainlink’s oracle networks provide smart contracts with easy integrations to existing application programming interfaces (APIs). This offers enterprises across major industries a universal gateway to any blockchain. Decentralized applications (DApps) built on blockchain can easily be integrated into legacy Web2 systems using Chainlink.

Blockchain oracles are super important for real-world blockchain use. They provide connectivity between on-chain systems (DApps, Smart Contracts) and off-chain systems, allowing data pull/push between both parties. Without oracles, DApps and smart contracts can only interact on the blockchain they are built for, severally limiting their application. This makes Chainlink critical for connectivity between blockchains and real-world data.

3. Polkadot

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The Polkadot network is an ecosystem of interoperable parachains deployed on Polka’s central hub called the Relay Chain. Parachains are custom blockchains built to host different projects and DApps. Some of the interesting projects on the Polkadot network include Moonbeam, Clover, Centrifuge, and Parallel Finance. These projects run parachains that are designed to provide optimal performance for their applications.

Polkadot provides scalability across blockchains through a set of common validators for multiple blockchains. This translates to increased transaction speeds across blockchains by spreading transactions across multiple parallel blockchains. With each parachain sharing the same architecture, cross-chain interoperability is guaranteed.

Ease of development is a strong suit of the Polkadot network. Blockchain developers can create a custom blockchain using Substrate, its multi-chain blockchain framework. Polkadot’s cross-chain activities are powered by the nominated proof-of-stake (NPoS) consensus. The network claims to have the lowest carbon footprint among proof-of-stake protocols.

4. Hybrix

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Hybrix is an open-source, borderless, cross-chain platform that aims to unite all digital ledgers. Hybrix enables users to store, swap, and transfer tokens across different blockchains. Developers can also build DApps that integrate with several blockchains.

Hybrix offers an all-in-one crypto wallet. It enables anyone to hold, send, and receive tokens across different native blockchains. Users no longer have to create multiple wallets on different blockchains. Hybrix's wallet makes it easy to move ETH, BNB, BCH, and many more tokens to any other wallet. It also allows for value swaps between different tokens.

The Hybrix rapid development environment (RDE) gives developers the building blocks for DApps using their preferred programming language. This offers one of the best platforms to build cross-chain DApps. Hybrix currently supports 25 blockchains and 406 tokens.

5. Loom Network

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Loom Network is a developer-focused interoperability platform. It provides developers with multi-chain scalability to build high-performance user-centric DApps.

Loom offers seamless integrations to Bitcoin, Ethereum, Binance Chain, Tron, and other blockchains. This gives developers an all-in-one solution, as DApps built on Loom can be used simultaneously by users on different blockchains. Basechain which is Loom’s mainnet runs on delegated proof of stake (DPoS). It is optimized for fast transaction times and high throughput needed for real-world DApps.

The network’s native token, LOOM is used by developers to pay for DApp hosting on the network. Unlike other blockchains, developers pay a flat monthly fee to host their DApps, so users don't have to pay any transaction costs. Loom currently has the top 100 ERC20 tokens integrated into Basechain.

6. Wanchain

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Wanchain is a blockchain interoperability solution driving cross-chain activities through decentralized direct bridges. Bridges enable the seamless transfer of tokens and digital assets between blockchains.

Wanchain offers three types of bridges.

  1. Direct bridges

    These bridges enable quick and secure transfer of digital assets from the source chain to the destination chain without the need for intermediaries or a relay network.
  2. Layer 2 bridges

    This type of bridge is used for bridging assets between layer 2 networks. For instance, users can bridge assets between Polygon and Arbitrum while preserving layer 2 features such as low gas fees and high transactions per second (TPS).
  3. NFT bridges

    NFT bridges use the lock-mint-burn-unlock protocol. Moving an NFT from one blockchain to another requires the original NFT to be locked on the source chain. A duplicate is then minted on the destination chain with the NFT IDs and attributes subsequently transferred.

Wanchain is compatible with the Ethereum virtual machine (EVM), making it easy for developers to build cross-chain applications using Solidity. Wanchain is interoperable with 22 blockchains and 45 tokens.

7. Harmony

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Harmony is an open-source, scalable blockchain that offers cross-chain bridges with Ethereum, Binance Chain, and other blockchains.

Harmony delivers this through its layer zero bridge architecture which enables it to swiftly transfer tokens between blockchains. With an estimated 2-second transaction timeframe and very low gas fees, Harmony’s cross-chain bridge ranks among one of the fastest token bridges.

Interoperability Will Unlock More Value Across The Blockchain Ecosystem

Interoperability will significantly aid real-world blockchain utility, as crypto adoption increases across the globe. The ability for linkages between on-chain and off-chain systems provides incredible opportunities for mainstream usage of blockchain technology.