Blockchains might soon be able to communicate with each other because of projects like Metronome and Cosmos. According to a recent Bloomberg report, both Metronome and Cosmos have reached key “developmental milestones.” Lucas Nuzzi, lead technical analyst at Digital Asset Research, stated:
“We are very close to achieving interoperable blockchains, and this has the potential of changing the entire cryptocurrency market.”
Per the New York based researcher, the development of interoperable blockchains could pave the way for the emergence of numerous blockchain-powered apps. Additionally, it could potentially increase the value of cryptocurrencies as more people and businesses begin to adopt them, Nuzzi added.
Cryptocurrency Exchanges Might Lose Business
Cryptocurrency exchanges might also be affected due to the development of interoperable blockchains. Recent data shows that the top 10 digital currency exchanges will earn approximately $1 billion from transaction fees annually. Currently, traders who want to buy Ethereum (ETH) usually have to use a cryptocurrency exchange to convert their Bitcoin (BTC) to ETH, or any other crypto of their choice. When one cryptocurrency is exchanged for another, the digital funds are transferred or moved from one blockchain to another, in this case from the Bitcoin blockchain to the Ethereum blockchain.