Interoperability Working Group
The Interoperability Working Group aims to identify the challenges and solutions to interoperability from both a technical and regulatory perspective.
Objectives for 2020
The WG has selected three objectives around which it will carry out its annual work. The common goal of the objectives is to facilitate interoperability when deploying blockchain technology.
• Identify the challenges facing blockchain interoperability both at a technical and governance level.
• Identify possible solutions to interoperability.
• Establish a link with the different governing bodies on standards.
Outputs for 2020
The Working Group engages in a number of activities aimed at achieving the abovementioned objectives. Among others, the Working Group focuses on engaging in the discussions with the AAB and the GAB in order to understand which are the most relevant challenges in both technical and governmental areas, working on the creation of taxonomy guidelines and liaising with the INATBA Standards Committee to contribute to dialogue with the ISO. On May 28, 2020 the Interoperability Working Group organized a joint roundtable with INATBA Standards Committee and Governance Working Group on Standards, Governance and Interoperability (https://inatba.org/news/inatba-convenes-global-conversation-on-standards-governance-and-interoperability/)
Why is it essential?
The first generation of blockchains was specifically designed for particular use cases (e.g., digital money). Instead of forking Bitcoin, the second generation of blockchains built a new ecosystem where decentralized applications can interoperate with each other (on-chain interoperability). However, a single blockchain cannot support a mass adoption (scalability constraints) and cannot be adapted for any use case (adaptability constraints). In order to overcome these issues, it is necessary to construct a different ecosystem made by application specific blockchains that communicate among each other (cross-chain interoperability).
For blockchain-based platforms to succeed, they will need to communicate and share data, a property that is usually referred to as interoperability. As recognised by the European Union Blockchain Observatory Forum in their report on Scalability, Interoperability, and Sustainability, while interoperability between blockchains can be achieved in a number of different ways, these can be broken down into two categories.
• The first category involves the use of trusted third-party authorities to validate transactions or information. Two or more blockchains, for example, might agree to trust an off-chain entity to either transfer information between the blockchains (an exchange) or to record the state of the respective blockchains so that each can trust what has transpired on the other (notary services).
• The second category involves sharing information directly between blockchains without the need for a third-party authority.