A big topic of discussion within the crypto sphere that has largely gone unnoticed, except by hardcore developers is the argument around whether a multichain future is possible.
This is extremely important for blockchain interoperability and wider adoption with better applications.
We’ll try and simplify this discussion to make it relevant to your long-term investment strategies.
An important point here is that this is a blockchain-level discussion and not at the token level.
First up, what do these terms even mean?
Multiple blockchains will exist simultaneously and will all add value to the ecosystem IN ISOLATION from other chains, but connected to each other through central hubs (Cosmos / Polkadot / Eth and the EVM ecosystem)
This is primarily since different blockchains have come about from the need of different use cases, different levels of decentralisation, and different levels of transaction speed.
Developers building DAPPS will always choose to build on the blockchain that they believe will offer them the best flexibility and security for their projects.
Some may prioritise TPS over decentralisation (eg: Solana over Cosmos), and some may believe having a DAPP that serves a niche use case will work better on a chain that does not have a huge ecosystem ( Eg: Cosmos over Ethereum)
One of this writer’s personal heroes in this space, Vitalik Buterin, himself believes that this is what the future of the blockchain ecosystem will look like.
It won’t matter which chain you build your project; it can easily be used on other chains as well. In this, different blockchains will speak to each other to share data and information.
We’re currently seeing early steps here with companies such as LayerZero and Cryptowormhole allowing you to bridge tokens between chains (Eg: BAT is an ERC20 token but can now be bridged and used on the Solana chain).
The challenge with this is while it allows tokens to be bridged across, it still doesn’t allow true data sharing at a blockchain level.
Interconnected chains are a problem that a lot of extremely intelligent people within the space are working toward solving. The Cosmos IBC is an example of an attempt toward this but for now, it’s restricted to the Cosmos ecosystem itself.
Making multichain future a reality
Two of the main issues currently being worked on to make a multichain future a reality relate to centralisation and security. The recent Wormhole bridge hack is a glaring example of a centralised entity losing funds and how even a small slip in security can have huge repercussions.
Let us know what you think in the comments : What do you see the future as.