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NFT and Interoperability

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Interoperability is the seamless transfer of data between different blockchains. When multiple blockchains are interoperable, they can talk to each other. As such, NFT interoperability means you can seamlessly share and trade NFT across different blockchain networks and applications.

Currently, we are far from achieving true blockchain interoperability, and the NFT ecosystem has its share. While the blockchain of choice for NFTs is still Ethereum, the industry is undergoing rapid change and many advances are being made on other blockchains, such as Flow, Cardano, and Solana.

How do interoperability issues affect NFTs?

Lack of interoperability is a significant barrier that prevents a smooth Web3 experience. The multichain nature of the NFT ecosystem is considered flawed by many NFT holders as they have to go back and forth between different chains to access, monitor or trade their assets. This process involves technical understanding of crypto wallets and other interfaces, which can be complicated for many users.

Interoperability-related issues are of particular concern to blockchain gamers as they are unable to transfer their in-game NFT assets from one game to another. Players invest considerable money and time to acquire those resources, yet they are tied to a handful of blockchain games.

The status of NFT marketplaces is also not bright In an ideal world, they would allow bidding, listing, buying and selling of NFTs on any chain. Right now, most marketplaces are only working for a specific blockchain. Magic Eden is a marketplace for Solana NFTs, while CNFTs are Cardano-specific, to name a few examples. Some marketplaces allow inclusion of some amount of NFTs from multiple blockchains, such as Rarible, which supports Flow, Tezos, and Polygon. But, even in such marketplaces, use cases are minimal.

Current interoperability solutions for NFTs

We can mention two distinct approaches that blockchain developers use nowadays to increase the level of interoperability.

#1 NFT Bridge

An NFT bridge is a two-way transaction channel. It connects two different blockchains and enables the transfer of an asset from one to the other. Using a set of smart contracts, NFT bridges lock the transferred asset on the first chain while they mint an identical asset on the second chain to be sent to the original owner’s wallet address. To achieve this, the NFT owner first deposits the NFT into the chain by signing the smart contract. Thanks to these signatures, the same smart contracts are invoked on the second chain to duplicate the original NFT

The most common feature of blockchain bridges is to transfer NFTs from the Ethereum mainnet to another blockchain. A popular example is the NFT bridge brought by Polygon. It integrates Plasma and POS security to prevent hacks and market liquidity issues.

#2 Meta Blockchain

Whereas Bridges enhance interoperability with two-chain approaches, solutions like Cosmos and Polkadot take it a step further by creating blockchains within blockchains. They offer services to form a new internet consisting of many interconnected blockchains.

Cosmos provides a solution to the NFT interoperability problem by enabling resource exchange across decentralized blockchains thanks to the IBC (Inter-Blockchain Communication) protocol.

Polkadot is another solution that enables blockchain applications to span multiple chains. For this purpose, it is developing the XCM language that will act as a lingua franca between different blockchains. XCM will unlock many NFT functionalities in terms of compatibility with multiple blockchains, such as paying fees to any token within the chain, multichain NFT staking, and cross-chain certification and reputation systems.

last word

Bridge and multichain solutions will eventually allow NFT applications to use the best parts of each blockchain. As a result, more innovative products and services will emerge.



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