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Blockchain Interoperability Market Size

Report ID: GMI6430
Published Date: Aug 2023
Report Format: PDF

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Blockchain Interoperability Market Size

Blockchain Interoperability Market size was valued at USD 275.5 million in 2022 and is projected to register a CAGR of 26.8% between 2023 and 2032, attributed to the increasing cross-chain asset transfer requirements across enterprises.

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Users and businesses often require transferring assets and data across different blockchain networks. Interoperability solutions facilitate secure and efficient cross-chain asset transfers, enhancing the utility of various blockchain platforms. In January 2023, the decentralized exchange (DEX) Uniswap announced that it would be integrating with the layer-2 scaling solution Polygon to enable cross-chain trading between Ethereum and Polygon. This integration allows users to swap tokens between the two networks without having to pay Ethereum gas fees.

Blockchain Interoperability Market Report Attributes
Report Attribute	Details
Base Year:	2022
Blockchain Interoperability Market Size in 2022:	USD 275.5 Million
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	26.8%
2032 Value Projection:	USD 2.88 Billion
Historical Data for:	2018 to 2022
No. of Pages:	300
Tables, Charts & Figures:	334
Segments covered:	Protocol, Solution, Application, Vertical
Growth Drivers:	Growing demand for cross-chain asset transfers Enhancements in decentralized applications (dApps) Rise in decentralized finance (DeFi) Increasing cross-border transactions and global reach of businesses Rising multi-blockchain use cases
Pitfalls & Challenges:	Data privacy and confidentiality Technical and scalability issues

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Similarly, in February 2023, the decentralized finance (DeFi) platform Aave announced that it would be integrating with Cosmos Hub to enable cross-chain lending and borrowing. This allows users to deposit and borrow assets from Aave on the Cosmos Hub, which offers lower gas fees than Ethereum. These optimistic scenarios will favor the adoption of blockchain interoperability solutions, leading to healthy blockchain interoperability market growth.

Different blockchains have unique features and capabilities. Interoperability enables applications to leverage the strengths of multiple platforms, combining functionalities to create more versatile and powerful decentralized applications. For instance, in February 2022, Polygon, a scaling solution for Ethereum, integrated with the Cosmos Hub for cross-chain communication between the two networks. This enabled developers to build dApps that could access the liquidity and security of Ethereum while also taking advantage of the scalability and interoperability of Cosmos.

However, blockchain technology is subject to varying degrees of regulatory oversight in different jurisdictions. Interoperability can complicate matters related to cross-border data sharing, legal compliance, and data privacy. Navigating these regulatory challenges can be a significant barrier to the development and adoption of interoperability solutions.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of blockchain interoperability reached USD 275.5 million in revenue in 2022 and is set to observe over 26.8% CAGR from 2023 to 2032, driven by the increasing cross-chain asset transfer requirements across enterprises worldwide.

The dApps type segment held over 36% of market share in 2022, attributed to rising popularity due to their ability to transcend the limitations of single-chain ecosystems.

North America recorded over 36% of the market share in 2022, due to the increasing emphasis on diverse blockchain networks in the region.

Some of the top blockchain interoperability companies are Biconomy, Chainport, Datachain, Fusion Foundation, GAVS Technologies, INERY, LEEWAYHERTZ, LI.FI, Liquid Apps, ONTOLOGY, Oracle Corporation, ORB Labs, Polyhedra Network, Quant Network, R3, and Riodefi.