4.1.1 Intra- and Interoperability

True distribution of data and security should allow functions to be spread across separate blockchain systems using different consensus mechanisms and other ledger data structures, with nodes implementing different software stacks.

To achieve intra-operability among one blockchain, networks use native tokens to stablecoins and other tokens of the same chain. You must use staking or burning of one token to get the other token. If the blockchain is not built with intraoperability in mind, then scalability will be a problem once the network grows. You could see such issues with stablecoin platforms like Terra recently.

A blockchain needs to achieve interoperability at two levels:

a) Interoperability at the value level: It requires the notion of value and the standardization of mechanisms to represent it via tokens within blockchain systems.

b) Interoperability at the mechanical protocol level: It requires developing standard protocols performing value conversions and token-transfers across the blockchain networks.

Presently blockchains fail to achieve interoperability at either one of the levels or in many situations, they do not work at both levels. This leads to bridge contracts that could be hacked.