We’re Living in a Multi-Chain World

When cryptocurrency first emerged in 2009, there was only one blockchain: Bitcoin. Since then, the number of cryptocurrencies has exploded and today we live in a multi-chain world with thousands of cryptocurrencies coexisting. Why are there so many currencies now? Wouldn’t it make sense just to have everything all under one currency?

Many longtime blockchain proponents would love to see a world of cryptocurrency mass adoption. But in order for that to become a reality, crypto needs to continue to expand technology and opportunities. This is why it is vital for many currencies to exist across the blockchain industry.

What Are Coexisting Blockchains?

While all chains start with a similar concept, each chain is made up of its own rules and its own consensus mechanism. All of these chains together make up the blockchain industry, but each chain exists independently and very few can interact seamlessly with each other.

What Are the Benefits of A Multi-chain World?

The biggest advantage of multiple cryptocurrencies blockchains, and sidechains is the advancement of the ecosystem overall.

Each currency has its own function, its own technology, and its own ideas. We can take advantage of all of the technology available to see what better suits our own needs. While bitcoin was originally created as an alternative to cash money, the newer blockchains that have emerged cover a wide range of functionality.

Certain industries may find one blockchain works better for them than others. The availability of many different currencies allows us to experiment with various consensus mechanisms, privacy requirements, or choose different limits on things like block sizes or gas limits. Having the opportunity to try different options allows for individual customization and growth across all aspects of business.

There are also different technological approaches to consider, as well as testing different ways of implementing mining. Different mining algorithms, for example, consume a different amount of power to mine a block versus other algorithms. Having multiple cryptocurrencies allows us to test why those blockchains have particular differences and see which makes the most sense.

Why Are Multiple Chains Necessary For Cryptocurrency Mass Adoption?

The development of more options and more infrastructure is imperative for growth in any aspect of life or industry.

Multiple chains allow more users to be supported and more industries the opportunity to integrate blockchain into their own day-to-day business.

Cryptocurrency is not a one size fits all solution. In order for mass adoption, there needs to be many solutions to cover any number of situations.

Ethereum and the development of Dapps show us exactly why multiple chains are necessary for the blockchain industry to survive and grow.

How Ethereum Changed The Blockchain Industry

The second-largest and most well-known cryptocurrency after Bitcoin, Ethereum was built with the idea of using global, decentralized blockchain technology and attributing it to a wide range of applications.

Ethereum created a major breakthrough in the industry by allowing Decentralised applications (dapps) to be built on top of the network. It is important to understand that most dapps are built on Ethereum. The use of dapps turns blockchain from simply a coin trading system to an endless world of decentralized possibilities, from gaming to shopping and much, much more.

At this point, there are over 3000 dapps built on Ethereum. The issue here is that the network has become so congested, users often complain about the high gas fee or pricing value this high growth has generated. This pain point led to the emergence of complimentary blockchains, including Polygon, Solana, and Binance Smart Chain. Rather than creating competition with Ethereum, the existence of multiple blockchains creates an optimized experience for users and will allow the use of dapps to continue to grow and develop.

Interoperability Is Key To A Successful Multi-chain World

While we can see how multiple blockchains will be vital to integrating cryptocurrency into everyday use, a major hurdle that still needs to be addressed is the inability of these blockchains to communicate with each other.

Interoperability is the ability of one blockchain to communicate and exchange information with another blockchain in a seamless manner. The ability for different currencies to interact with each other will play an essential role in facilitating future mass adoption.

Blockchain continues to grow, but interoperability is critical to the long-term success and growth of the industry. Any software system requires collaboration and interaction to work to its full potential and this is no different. Interoperability between blockchains would enable easier information sharing and a more user-friendly experience overall.

Solutions continue to emerge to seamlessly bridge the gap in communication between chains. A great example of this happening right now is Quant Network. As more currencies are developed, we expect to see the integration technology continue to advance as well. When blockchains can successfully work together, the likelihood of mass adoption seems much more attainable.

Join The Conversation

The blockchain world is continuing to grow and garner more interest. Without having multiple blockchains it would be complex to onboard the next billion crypto users. There is so much to be gained from blockchain integration, but a single currency would not be able to handle every trader and every industry that should be utilizing the technology.

The advancement of blockchain tech is a hot topic in the WhaleRoom community. There are endless possibilities of what will come next and where the world is moving to accommodate more cryptocurrency. We’d love to have you join us and share your thoughts on where crypto is headed! Come over to WhaleRoom and see what we’re all about. We can’t wait to meet you!

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