Whenever we start to turn our minds around the idea of decentralization and how cryptocurrency works, it immediately gets spun towards the idea of blockchain. It is nothing more than a siloed platform that is dedicated to a specific cryptocurrency and works as a Ledger on which transactions taking place in real-time are recorded. Every blockchain dedicated to a specific cryptocurrency does not communicate with another blockchain presenting some other crypto, and this is where decentralization gets a massive hit. To be able to achieve true decentralization, it is necessary that these blockchains not only interconnect with each other but also can communicate in real-time.
If decentralized finance is to reach a new climax, then it has to embrace the idea of interconnectivity. This is nothing but a classic error. If yahoo mail were not to interact with Google mail and this was the headline for a news blog or channel for tomorrow, then we are truly done with the idea of communicating and the Internet being an emissary to do that. The same thing, when applied to the crypto industry, tells us that bitcoin’s blockchain should be able to communicate with that of Ether’s blockchain, in turn, should be able to communicate with Bitcoin and XRP, etc.
Inter-Blockchain Communication is Necessary
The idea is that the blockchain for every cryptocurrency out there should be able to freely communicate with another blockchain while all of this is happening in real-time and under the surveillance of the respective cryptocurrencies involved in the business. Inter Blockchain Communication protocol is an idea that is too out there at the moment and is not being facilitated by any visionary of the crypto space or an investor for that matter. This shaking of hands between such massive clusters of blockchains is important not only for the sake of better communication and efficient execution of transactions but also for the sake of making the service more approachable and convenient for the people.
Currently, if someone wants to liquidate their Bitcoin to be able to buy Ether, then they have to first convert their Bitcoin into fiat currency, and using that only they might be able to buy new crypto, as there is no direct conversion. All of it has to be first converted into an alternative fiat counterpart before it can once again be invested; this needs to change for the good of the public.