Interoperability is the ability of blockchains to work in conjunction with each other. Data interoperability is important because it deals with the ability of the systems to “create, exchange, and use data” between two different blockchains. Interoperability reduces ambiguity and improves workflow; however, interoperability proposes a great challenge due to differences in the proprietary interface technology between two blockchains.
As a design requirements, blockchains should define and provide for the extent to which information and services can be shared between two blockchains.
Stellar follows a set of interoperability basics. Anchor’s set up the infrastructure to make it possible for wallets to provide in-app deposits by adhering to the established best practices in the Stellar Ecosystem Proposals (SEP).
SEP are open source documents that are publically created and they live in the Github repository. They provide a clear definition for how institutions like the “asset issuers, wallets, exchanges, and service providers” should be interacting and interoperating with each other.
Anchors interoperate with Anchors, Anchors interoperate with Wallets, Anchors interoperate with Exchanges and Anchors interoperate with Service providers.
On November 17, 2020 – Timer Weller, Head of Integration, SDF, will be presenting a session about technical underpinnings which enable anchors to interoperate with other anchors and wallets on the Stellar. Further he will be explaining on how they came to be and how they have evolved since Stellar’s inception.
Sydney Ifergan, the crypto expert tweeted: “The Generalized toolkit from Stellar to tokenize any asset is a plus. Users can things like what Tether did with USD and what Coinbase did with USDC.”
Every token on the Stellar Ecosystem is therefore exchangeable with any other token on the network. It is easy to connect with buyers and sellers on the Stellar Protocol. The bids and ask are easy to make on the public network and compatibility trades happen instantaneously.
Stellar Lumens (XLM) Improving Interoperability
The Stellar protocol are working to improve several parts of the protocol to ensure they are able to integrate several features in to existing business structures. They are doing several developments to ensure that there is better interoperability between products from the existing financial infrastructures like the business banks and central banks.
Stellar have been reinstating on how it is important to ensure sustainability in the innovative solutions that are getting created. Thus making this truly practical for the end users. One way this can get accomplished is by interoperability.