In just a few years, decentralized networks have witnessed tremendous growth and collectively surpassed their financial scale. USD 25 billion And the number of members is growing. As many states and countries in the United States like to Swiss, MaltaAs Hong Kong introduces favorable cryptocurrency legislation, it is difficult not to see Web3 as the future form of business organization.
However, there are currently hundreds of competing protocols in the blockchain space, and developers often have to choose between launching on a single chain, limiting their scope, or integrating multiple chains. This can not only inhibit liquidity but also open up complex new vulnerabilities. This fragmentation hinders collective progress and limits widespread adoption of blockchain technology. It’s time for this to change.
We need to let developers focus on making things as simple as possible to build. Fortunately, direct integration has become possible that not only bridges the Web3 gap in a direct and simple way, but also extends the functionality of each chain beyond its original design, enabling new and efficient innovation.
Complexity of decentralization across multiple chains
In fact, the advantages of a multi-chain strategy are very strong. This approach provides elasticity, helping services leverage the benefits of multiple chains while negating their weaknesses. This adaptability enables flexible and continuous operation even if a single blockchain encounters problems. Additionally, by expanding across multiple ecosystems, we can foster improved collaboration and bridge the gap between different blockchain communities. For financial platforms, multi-chain operations ensure seamless access to liquidity from various decentralized exchanges, regardless of the underlying blockchain.
Many of the features currently available, such as bridges, layer 2, and sidechain networks, work “with” existing blockchains and serve as a medium for connecting different networks. While these solutions show promise, there are often too many competing protocols using their own tokens, which leaves the ecosystem siled and the available liquidity significantly fragmented.
Even if there were working bridges connecting them across multiple chains, the traditional transaction times and complex fees of moving these infrastructures could make the practice unattractive and limit the potential of this ecosystem.
Moreover, developers can still easily become overwhelmed by the sheer volume of existing blockchain protocols. This is especially true for developers transitioning from Web2. It is unrealistic to expect your development team to have a working knowledge of all of these chains or how to implement the services that connect them. It goes without saying that leveraging individual blockchains and bridges opens up new possibilities. New security vulnerability, which often acts as a single, centralized point of failure. I think it might have legs. considered illegal As regulations evolve, the risk of government seizures becomes greater.
This makes the current landscape unsustainable. Developers don’t have to understand or pay the associated costs to participate in the dozens of different entry points to Web3. What is needed instead is a decentralized “network of networks.” Not only is it built 100% on-chain, but developers already know how to transfer value and information across multiple protocols without having to start from scratch or trust a third party. bridge. This is where direct integration between chains makes the biggest difference.
Go beyond Layer 2 to direct integration
Direct integration is made possible through “chain key” encryption. This allows a single network to sign transactions running on other chains.
Contracts built on this technology can store and process assets trustlessly across different chains and can even call smart contracts directly. There is no longer a need for a central gateway between asset ecosystems. This process allows for a functional and unreliable replacement for existing problematic bridges.
Being able to enable a multichain future from a single point of entry is about more than scalability and interoperability. These developments can have important implications for both developers and users. First of all, by leveraging cryptography to interface with other networks, projects can benefit from faster time to market because teams don’t have to “reinvent the wheel.” Another benefit of this is that creative teams can experiment more freely because they have access to many of the systems they already need, freeing up bandwidth to explore new ideas.
For users, new access to chain-wide liquidity should greatly improve their ability to move funds to various platforms and use them where they are most profitable. It also makes it easier for users to access tokens from multiple chains from a single interface, as they don’t have to learn all of the different platforms, which also greatly improves the broader user experience. Making Web3 accessible and intuitive will be a key cornerstone for broader public adoption.
As the world continues to embrace the business value of a more distributed future, there must be an increasing focus on embracing technologies and tools that enable inclusion and collaboration. Powered by layer 2 networks and chain-key cryptography rather than bridges, multichain access opens new doors for developers to access these tools, enabling flexible, innovative deployments, collaboration, and connectedness tomorrow.