How to cross the bridge: Interoperability among blockchain systems: Interoperability among blockchain systems

Blockchain systems are, in nature, dispersed (decentralized) networks. The system, in theory, allows for a transparent and immutable system where transactions can be observed and analyzed. However, in practice, evaluating and monitoring transactions is cumbersome. Consequently, blockchain systems remain black boxes that only a few experts can understand. This undermines the raison d’etre of blockchains, namely the promise of transparency. In this research, we develop a ledger data analytics (ledgerlytics) prototype which allows for studying NFT bridges and theorizing about the dimensions of interoperability. Practical implications reveal that hiding a token ́s track in an otherwise supposedly transparent system is possible. We provide evidence that current research may only consider a subset of a token’s actual history among blockchain systems. Finally, we claim that interoperability among blockchain systems can lead to decreased transparency. Thus, ledgerlytics tools and methods are needed.