The multi-chain approach is the future of the blockchain industry

Some people estimate that the blockchain industry market size is Reached more than 21 billion U.S. dollars By 2025.The market value of the entire cryptocurrency market has achieve More than 1.9 trillion US dollars. An ecosystem that was once defined by its close-knit community and exclusivity now covers governments, companies, institutional investors, and individuals, all of whom have become more active in the space for continuous development.

With this new popularity, a crossroads appeared. We have reached a stage where the number of users using decentralized technology has exceeded the function of the technology itself. This leads to frequent network congestion and a solution is needed.

Many of the obstacles we encounter can be easily resolved by extending solutions, such as bridging, parachains, and other features that create a seamless transition for Web 3.0 users, and are completely dependent on the common multi-chain approach adopted by the next wave of blockchains. Vision.

related: Multi-chain future will accelerate innovators and entrepreneurs

Scalability: Ethereum Challenge

Today, almost all DeFi projects are built on the Ethereum blockchain, making it the standard default blockchain for many decentralized applications (DApp) and protocols. However, the scalability of Ethereum brings many challenges. Pain points of delayed adoption include expensive gas fees, complicated onboarding processes, unnecessary duplication, and obstacles for developers who aim to create new DApps and accompanying products.

related: Where is the future of DeFi: Ethereum or Bitcoin?Expert answers

As a result, blockchains such as Binance Smartchain, Solana, Cosmos, and second-layer solutions (such as Polygon) have recently emerged, and they are quickly catching up and solving some of the problems caused by building on Ethereum. Contrary to popular belief, these solutions are not implemented to “kill Ethereum”, but to provide a multi-chain method to build Web 3.0. As developers try to take advantage of the capabilities of the technology, the number of blockchains and blockchain projects built every day is increasing. This growth is the tacit understanding that there is no perfect solution that can meet all blockchain needs at the same time.

related: Is the new decentralized Internet or Web 3.0 possible?

In a multi-chain world, we have the ability to promote and interconnect new chains to enhance the overall user experience, not competition. The prospect of a multi-chain ecosystem will allow anyone to build it anywhere. It relies on cross-chain solutions, some of which are already in production. The Ethereum virtual machine compatibility solution is also becoming the basic pillar of the ecosystem. These solutions allow different blockchains to communicate with each other without the help of an intermediary, mimicking the way the Internet works today.

Learn from the development of the Internet

Just as the Internet used to be out of touch with its own series of expansion problems, blockchain technology must transform from its current state—an isolated chain—to an interconnected ecosystem. This will enable new users and inexperienced users to enjoy the full benefits of ledger technology. The goal is to build for commercial use.

related: Is encryption approaching its “Netscape moment”?

Today, DApps are complex and expensive, just like the World Wide Web before describe Such as “slow” and “rough”. Unlike the smooth experience encountered when using modern websites and applications (such as YouTube or Instagram), the blockchain experience is defined and experienced by each activity part. This leads to fragmentation of operations that should be seamless. Multi-chain technology will transform this experience from complex chain-to-chain movement to uninterrupted activities where end users don’t know which chain they are operating on.

At present, we can only imagine what this will look like, but we know that it can completely change the way we use blockchain technology. Take the implementation of blockchain in the traditional financial field as an example. The lack of interoperability will make the interaction between banks using different blockchains too complicated, thereby cutting off any communication between customers using different blockchains for banking. If these blockchains are interoperable, not only is it possible to transfer data from one blockchain to another – it will also be safer and faster.

If the past can predict what will happen in the future, then the natural evolution of Web 3.0 will become the ultimate connector for on-chain communication and data sharing. Web 2.0 makes the Internet more interactive, and Web 3.0 will make the Internet easier to transact, more inclusive and semantic.

Multi-chain future

Mastering the complexity of existing blockchains is absolutely critical to transforming blockchains into a high-growth industry.

Imagine a major first-layer blockchain like Ethereum as a city. They are crowded and more expensive, but you can get certain benefits. On the other hand, the second-tier blockchain and sidechain are more like suburbs. They are less crowded and may provide lower security. If there is proper fast transportation between these communities, users can enjoy the best things in the world.

In order to prepare for the large-scale adoption of Web 3.0, when there will be an influx of more than 1 billion users, we must be prepared to adopt a multi-chain approach to eliminate complex transactions and ensure a frictionless experience for end users.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.