Besides scalability, there are several other dimensions in which blockchain technology is evolving and upgrades are being developed.
Interoperability is a very important area, which is the focus of many research and development efforts. Various mechanisms for building bridges between different blockchain protocols are currently being tested. These include the so-called atomic swaps, decentralized exchanges, and inter-chain communication protocols, as shown in the following diagram:
Atomic swaps represent a direct trade of cryptoassets belonging to one blockchain, such as Bitcoin, to cryptoassets belonging to another blockchain, such as Litecoin. This is done on-chain, as opposed to the majority of popular cryptoasset exchanges, which match and settle transactions off-chain, such as standard financial exchanges. This or other direct cross-chain transaction...