The use of blockchain has grown significantly over the past three years. The size of the global blockchain interoperability market is now on track to reach $1.98 billion by 2032, according to a report from Spherical Insights & Consulting.
Blockchain interoperability will grow significantly by 2035
According to a study by Spherical Insights & Consulting, the size of the global blockchain interoperability market is estimated to reach $0.2 billion in 2022. The market is expected to grow to $1.98 billion globally by 2032.
The increase at a compound annual growth rate (CAGR) of 25.77%.
Interoperability is defined as the idea of promoting cross-chain data sharing and the interaction and integration between different blockchain networks. Supply chains, finance, identity management and other industries have all shown potential for blockchain technology. One of the biggest benefits of blockchain interoperability is the capacity for cross-chain transactions.
In general, the DoD evaluates interoperability based on narrow viewpoints that focus on issues such as JTA standards, data models, COE compliance, and certification requirements. It is also measured by how different systems compare to these standards or requirements.
Factors contributing to the rise of blockchain interoperability
The growing use of the internet has resulted in the use of blockchain technology in various public and private sectors. These include hospitals; supply chains; media; and financial institutions, including banking services.
According to the Spherical Insights & Consulting report, many factors have led to the growth of blockchain interoperability and will continue to do so.
The COVID-19 pandemic is one such reason. The pandemic has accelerated the use of blockchain technology in many sectors where transparency, traceability and secure data exchange are essential. The dependence on the internet that the pandemic has created will likely continue for years to come. This will likely lead to blockchain usage also rising steadily.
Another reason for the increase in interoperability is the rise of dApps. The growing popularity of interoperability solutions in decentralized applications can be attributed to their ability to overcome the limitations of single-chain ecosystems.
With the largest market share during the period, the report also sheds light on the fact that North America is the dominant region in the industry. Companies in North America typically prioritize innovation and technology adoption. They are attracted to interoperability because it can help blockchain networks foster teamwork and give them a competitive advantage.
Bitcoin and Ethereum are still having trouble finding ground
According to Spherical Insights & Consulting, the Internet of Things enables secure and effective communication between devices over various blockchain networks. The increasing interconnection of these devices increases the need for interoperability in the blockchain.
But due to block size limitations, open and unsanctioned blockchains such as Bitcoin and Ethereum have serious scaling issues. These limitations have led to the introduction of scaling alternatives such as Ethereum 2.0 and the Lightning Network. Scalability is still an issue for broad adoption and smooth change of assets and data across chains, despite the progress made.