Multichain solutions will transform the blockchain space, making it more than an "interesting new tech" but an industry that is essential and high-growth.
Some estimates put the market for blockchain at more than $21 Billion by 2025. The total market capitalization for the cryptocurrency market is already over $1.9 trillion. A community
that once was defined by its close-knit community, exclusivity, and tightness now has a wider reach. This ecosystem is being embraced by governments, institutions investors, and individuals who are becoming more positive about this evolving space.
This new popularity has created a crossroads. The point at which the number of people using decentralized technology exceeds its functionality is here. This has led to a need for solutions and regularly congested networks.
Many of the problems we are facing could be easily solved by scaling solutions like bridges, parachains, and other features that allow seamless transitions for Web3.0 users. These solutions rely solely on a common vision of a multichain approach towards the next wave in blockchain adoption.
The Ethereum Scalability Challenge
Nearly all DeFi projects today are built on the Ethereum blockchain. This makes it the default blockchain for many decentralized apps (DApps), and protocols. Scalability on Ethereum is not without its challenges. There are many issues that delayed adoption, including high gas costs, a complex onboarding process, unnecessary repetitions, and a difficult onboarding process.
There has been a rapid emergence of blockchains like Solana, Cosmos, and Binance Smart Chain. These solutions are rapidly catching up to solve some of the problems associated with the Ethereum building. These solutions are not intended to "kill Ethereum", contrary to popular belief. They are meant to offer a multichain approach for building Web 3.0. Developers are trying to make the most of the technology's potential, and the number of blockchains is increasing each day. This is a tacit acknowledgment that there will never be a perfect solution to all blockchain problems.
Multichain is not about competing. Instead of being competitive, we can facilitate and interconnect a new chain to improve the user experience. Multichain ecosystems would enable anyone to create anywhere. It relies on cross-chain solutions. Some of these are in production. The ecosystem is also dependent on compatibility solutions for Ethereum Virtual Machines. These solutions enable different blockchains to communicate directly with each other without intermediaries, much like the internet does today.
Learn from the evolution and growth of the internet
Blockchain technology, like the internet before it, was once disjointed and faced its own scaling problems. It must change from its current state, where chains operate in isolation, to a connected ecosystem. This will allow novice and new users to reap the benefits of blockchain technology. It is our goal to make the ledger technology available for commercial use.
DApps today are complex and costly, much like the World Wide Web. Instead of the fluid experience, one might experience when using apps like YouTube and Instagram, the blockchain experience is defined by each part and experienced by that individual. This causes fragmentation in actions that should be seamless. Multichain technologies will transform that experience from complex chain-to-chain moves to uninterrupted activities in the end user's ignorance of which chain they are on.
We are only able to imagine the future, but it is possible that blockchain technology could change the way we work. Consider the implementation of blockchain technology in the traditional financial sector. Interoperability is a problem that would make it difficult for banks to interact with each other using different blockchains. This would cut off communication between customers who have different blockchains. Transmitting data between the blockchains would not only be possible but also safer and more efficient.
The future of web 3.0 will be the ultimate connector for on-chain communication. Web 3.0 will make it easier to transact on the web, more inclusive, and more semantic, just as Web 2.0 made the internet interactive.
To make blockchain a high-growth industry, it is crucial to take control of existing blockchain complexities.
Think of major layer-one blockchains such as Ethereum as a city. Although they are more congested and expensive, you still get some benefits. Layer-two and sidechains, on the other hand, are closer to the suburbs. They may be less congested, but they offer lower security. Users could have the best of both worlds if there was a reliable means of rapid transportation between these communities.
We must prepare for Web 3.0's mass adoption. This will allow us to eliminate complex transactions and provide an easy experience for users.
Blockchain technology is able to change the world. And not just through cryptography
Blockchain is a great technology that can be used to improve efficiency. This will make it more popular over the next decade.
The adoption of blockchain technology has increased dramatically over the past three to four years. Each industry is looking at different uses for it. Blockchain has many aspects, from technical to business. However, the industry is growing rapidly makes it difficult to understand all of them.