Web3 interoperability is the ability for different blockchain networks and systems to communicate and interact with each other, and exchange data and information. With this ability, Cross Chain Technology is enabled, allowing assets, data, and features to flow freely between blockchains, creating a more connected, efficient, and flexible decentralized environment.
Interoperability is an enabler that makes the seamless transfer of assets, data, and capabilities between different blockchains possible, and cross-chain technology is the key to this. For instance, a user might use smart contracts on one blockchain and exploit cheaper transactions on another, or shift tokens from Ethereum to Binance Smart Chain. This fluid interaction increases the variety of opportunities inside the Web3 ecosystem and improves user experiences, and its creation of DeFi (Decentralized Finance) platforms, NFT Marketplaces, and DApps (Decentralized Applications) rely on interoperability.
As these apps provide cross-chain capabilities these apps can access a variety of blockchain features and user bases, which makes these apps more useful and scalable. For instance, an interoperable DeFi platform can combine the liquidity of several blockchains to offer consumers better trading options and higher rewards; decentralized protocols and APIs are important tools for achieving interoperability.
Thanks to Oracle services and The Graph Protocol, DApps can retrieve and communicate with on-chain data from multiple networks. These interfaces allow developers to easily create applications that perform transactions, access cross-network information, and access real-time data.