The Future of the Blockchain Industry is the Multichain Approach
Because multichain solutions can make changes in the blockchain space, this “interesting new technology” can eventually become a vital industry with high growth.
By 2025, the market size of the blockchain industry is estimated to reach an excess of $21 billion. As a whole, the cryptocurrency market has a market capitalization that is now more than $1.9 trillion. Before, this ecosystem was defined by exclusivity and a tight-knit community. Now, it is reaching businesses, individuals, governments, and institutional investors who have become more optimistic about the evolution of this space.
Since it is now becoming famous, numerous crossroads were able to emerge. It has reached an adoption era where the number of people using decentralized technology is now so much more than its functionality. It has led to networks that are regularly congested and more demand for solutions. Not only that, but it can be easy for people to solve a lot of the roadblocks that they experience through scaling solutions like parachains, bridges, and other features that can create transitions that are seamless for Web3.0 users. They can solely depend on the multichain approach’s shared vision in adopting blockchain’s new wave.
The Challenge of Ethereum: Scalability
Nowadays, almost all the Defi projects are built on the blockchain Ethereum, which is why this blockchain is the standard default for many protocols and DApps (decentralized applications). Yet, there are numerous challenges that Ethereum’s scalability presents. The reasons for adoption are delayed, the complicated onboarding process, expensive gas fees, obstacles for developers who want to create accompanying products and new DApps, and unnecessary repetition.
Because of that, blockchains like Solana, Binance Smart Chain, two-layer solutions such as Polygon and Cosmos are quickly catching up to solve some of the problems that go with building on Ethereum. It is contrary to the famous rhetoric that these solutions are not implemented to “kill Ethereum” as it aims to give a multichain approach to building Web 3.0. Every day, the number of blockchain projects and blockchains built has constantly increased because developers are trying to leverage the capabilities of technology. With the increase, people have tacitly acknowledged that there is no perfect solution that can address all the needs of blockchain at once.
In the world of multichain, instead of competing, we can interconnect and facilitate new chains to enhance user experience overall. Anyone can build anywhere because of the prospect brought by the multichain ecosystem. It depends on cross-chain solutions, wherein some of them are already being produced. Compatibility solutions with the Ethereum Virtual Machine have now started to become the ecosystem’s fundamental pillars. With these solutions, various blockchains are allowed to communicate with each other without the assistance of intermediaries, as they mimic the way the internet is working nowadays.
Getting to learn from the internet’s evolution
Like the internet that happened before it that was disjointed with a set of issues in scaling, blockchain technology needs to move from its existing state wherein chains operate in isolation to an ecosystem that is connected. With this, it can be possible for inexperienced and new users to become happy with ledger technology’s full benefits. Here, the goal is to build so users can use it commercially.
Nowadays, DApps are costly and complicated, just like how the World Wide Web got described as “crude” and “slow.” Instead of the fluid experience that people encounter whenever they use modern apps and websites like Instagram or YouTube, the knowledge that blockchain brings is experienced and defined by every part that moves. Because of that, the actions’ fragmentation can become seamless. Technologies in multichain can have the experience shifted from being complicated movements chain-to-chain to uninterrupted activities wherein the end-user is unaware of what chain they operate.
Right now, people can just imagine what it may appear, but we know that it can eventually revolutionize how people use blockchain technology. One example is the implementation of blockchain in the traditional financial sector. Since it lacks interoperability, how banks that operate different blockchains interact can be too complex that it cuts off communication between clients who are banking with various blockchains. Whenever the blockchains become interoperable, it will not just be possible to have data transmitted to another, but it will also become faster and more secure.
If the past can indicate what the future may bring, the ultimate connector of data-sharing and communication on-chain would be Web 3.0’s natural evolution. Since Web 2.0 allows the internet to become more interactive, blockchain knowledge will become easier with Web 3.0 as it is more semantic and inclusive.
The Future of Multichain
It can be vital to take charge of the existing complexities in blockchain so that blockchain can transition to an industry with high growth. Try to imagine Ethereum or any major blockchains with one layer as a city. They are more costly and highly congested, but they provide certain benefits. Unlike the significant blockchains, sidechains and layer-two blockchains can be very similar to suburbs. Despite being less crowded, they often offer minimal security. Whenever there is a proper way to transport fast between these kinds of communities, the users would have fun with the best of all these worlds.
If you want to become prepared for Web 3.0’s mass adoption, you will see the influx of more than 1 billion users, so you need to become ready to adopt a multichain approach. You can bring with it the assurance for end-users to have a frictionless experience and eliminate highly complex transactions.