As blockchains receive continuous fine-tuning and improvements, developers are identifying crucial issues that are restricting the advances in interoperability and scalability of the technology. One such issue is called ‘blockchain fragmentation’. As the term suggests, it refers to a situation where the ecosystem of a blockchain is divided into multiple smaller on-chain networks, each facilitating a different task efficiently. The phenomenon of fragmentation is known to complicate blockchain adoption. It often leads developers to choose between multiple blockchain solutions that do not functionally align with each other. Gadgets 360 spoke to Rohas Nagpal, chief blockchain architect at Hybrid Finance Blockchain (HYFI), a layer-1 blockchain, to understand the process of blockchain fragmentation and how it impacts the ecosystem. “Blockchain fragmentation happens when different blockchains cannot interact smoothly. Each chain works like an island, with its own rules, tokens, and systems. This lack of connection limits the potential of blockchain technology,” Nagpal said. When a blockchain fragments, it essentially obstructs the network from supporting a unified system for value exchange to its full potential. The continuously increasing …