Crosschain Interoperability: Soon, We Won’t Say “Web3”

By Dan Keene, Chief Business Officer of Portal

Cross-chain interoperability is the key to achieving the mass adoption of blockchain technology in any sector. Interoperability enables blockchain networks and protocols to communicate with each other, making it easier for everyday users to engage with blockchain technology. The rise of blockchain technology has led to the development of new blockchain networks that tackle specific niches within certain industries, each blockchain having specialized functions based on its purpose.

However, there is no one perfect solution that will be able to meet all of the needs associated with blockchain technology all at once. Therefore, as more organizations become aware of both the challenges and possibilities, the interconnection of unique blockchains is becoming increasingly necessary.

Blockchain interoperability refers to a wide variety of methods that enable many blockchains to communicate, share digital assets and data, and work together more effectively. This makes it possible for one blockchain network to share its economic activity with another. For example, interoperability allows transmitting data and assets across different blockchain networks via decentralized cross-chain bridges. One main consequence of this is defragmentation, the pooling of small, inaccessible pockets of users and liquidity into a single, easy-to-access market. At Portal, we see this is a major step towards bringing mainstream audiences into Web3. More than that, our innovative tech stack, built with LayerZero, allows this interoperability to occur via infrastructure that is trustless. By ensuring user peace of mind and ease of use, we maximize our chances of uptake in blockchain technology.

The bottom line: the chances of mainstream adoption are significantly smaller unless interoperability issues begin to be resolved. Current processes like bridging or swapping tokens between chains entail significant user frictions; onboarding into Web3 is, at present, clunky and intimidating to prospective users, particularly when sending digital assets between networks.

Let’s look at Gaming. Like many established Web2 industries at scale, gaming is currently largely centralized, with all related data stored on a server that is fully controlled by the game administrators. This means that players don’t have real ownership of their accounts and items, and centralized servers present many limitations and vulnerabilities. However, nascent blockchain technology can eliminate or mitigate most of these problems by enabling players to have permanent ownership and full control over their in-game assets.

But what happens when players want to move their assets from one chain’s ecosystem to the next? Typically, this is done through clunky “bridging” or “swapping” processes, but these are the opposite: easy and user-friendly. These mechanisms are a world apart from contemporary mainstream payment solutions found in the likes of e-commerce and app stores. Next-gen Web3 solutions like the Portal Wallet allow users to seamlessly and securely move assets (such as currencies, in-game items, skins, and the like) between dApps on different blockchains, boosting trust and reducing friction. Only by solving these very practical considerations can we begin to talk about blockchain and Web3 gaming in terms of utility and possibility rather than processes and pain points.

Blockchain interoperability can enable the creation of a unified gaming ecosystem useable by all. Portal is building one such ecosystem, an all-encompassing umbrella where value and users flow easily between walled gardens. The Portal Wallet’s seamless UX makes it the go-to entry point for prospective Web3 gamers, whilst the Portal Platform and Network will leverage world-class representation across entertainment to accelerate adoption by Web2 and 3 games alike.

Blockchain-based games allow players to have full control over their in-game assets, which are represented by unique, non-fungible tokens (NFTs). These assets may include in-game cards, skins, equipment, and characters, and they can all be linked to blockchain tokens, which are maintained by a decentralized network. More broadly, blockchain’s ability to transparently record information and transfer assets allows users to capture a portion of the economic value created by gaming. Portal’s extensive entertainment and streaming network allows it to connect games and gamers, with native token $Portal efficiently flowing between all parties.

Blockchain interoperability can also enable the creation of decentralized marketplaces, which can be used to trade in-game assets. This will allow for the creation of a more transparent and fair gaming economy, where players can trade their assets without the need for intermediaries, and most importantly, enable the creation of cross-game assets for use across different games, creating a much more immersive, enriched gaming experience that paves the way toward a fully realized industry.

What else might then be possible?

Once blockchain interoperability happens at scale, it will enable a wide range of products and services outside of gaming. At Portal, we’re constantly keeping an eye on possibilities not just in our own sector, but more broadly. The potential use cases that could emerge are, frankly, myriad, but some great examples are:

1. Supply Chain Management: Interoperability can enable the creation of a unified supply chain ecosystem that can be used by everyone. This will allow for the seamless transfer of goods and services across different supply chains, making it easier for businesses to track their products and services from start to finish.

2. Healthcare: Imagine the reformation of a unified healthcare ecosystem that can be used by everyone. This will allow for the seamless transfer of medical records and other health-related data across different healthcare providers, making it easier for patients to access their medical records and receive better care.

3. Real Estate: Interoperability paves the way for a unified and democratized real estate ecosystem where it’s possible to seamlessly transfer property titles and other real estate-related data across different real estate providers, making it easier for people to buy and sell properties.

4. Energy: I’m ready for a world where you can transfer energy credits and other energy-related data across different energy providers, making it easier for people to access renewable energy sources and reduce their carbon footprint.

It’s clear that we stand at the precipice of mass adoption for the industry. Once interoperability is the order of the day, I believe we won’t say things like “Web3” anymore. We’ll just do our business and build great tech using the best infrastructure available, leaving the user to enjoy novel products and experiences as they please. Imagine that!

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About Dan Keene

With a career grounded in traditional finance, Dan has 10+ years at the forefront of consumer tech. Named in Forbes’ 30U30 Europe list for 2021, he has spent the majority of his time founding, scaling, and selling companies across multiple sectors. Highlights include scaling one company to Unicorn status and raising $650m in investment for another; investors included the likes of Goldman Sachs and Softbank. Dan has been full-time in Web3 for the last 3 years and is bullish on the disruptive force that blockchain and digital assets can bring to all industries, particularly gaming.

About Portal

Portal is the universal gaming ecosystem powered by $Portal. Through market-leading tech products and a world-class network, Portal is bringing blockchain gaming to mainstream audiences. It’s the crucial first step in their mission: to onboard the first billion gamers into Web3. The Portal Ecosystem is composed of multiple interconnected elements, each providing a unique value add for users: the universal gaming coin, Portal Platform, Wallet, and Network. With 180+ games integrated at launch, Portal is set to be the world’s access point to Web3 gaming.

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