Ripple CEO: The Future Will Be a Multi-Chain World
Looking at the current state of the Web3 world, the blockchain ecosystem is currently dominated by the unshakable Bitcoin blockchain, the second largest by market capitalization, Ethereum, and numerous other smaller blockchains.
While users and investors seem to prefer transacting or developing ecosystems on one or two mainstream blockchains, some experts believe that the future will be composed of multiple blockchains working together.
Brad Garlinghouse, CEO of Ripple, expressed his optimism about the changes happening in the cryptocurrency space and actively advises against extreme attitudes towards any specific cryptocurrency, as he believes that the future will be a multi-chain world.
Why does the world need so many blockchains? And what are the advantages and disadvantages of multiple chains versus a single chain?
Why are there so many chains?
Each blockchain can be thought of as an independent country or an isolated island. There is almost no way for different islands to connect and, therefore, they cannot access updated states or information from each other.
There is no direct connection between different blockchains or between blockchains and the external real world. This means that users cannot access applications on one chain from another chain, similar to how one cannot use Alipay or WeChat Pay for transactions when traveling abroad.
Different blockchains have their own advantages. Some emphasize environmental friendliness, while others attract artists and develop applications suitable for specific types. The more people use a blockchain, like a country with a large population, the more willing people are to build and develop it.
In order to expand the user base and enable communication between users, some developers deploy their projects on multiple blockchains or exchange data through cross-chain bridges.
Each blockchain can be thought of as an independent country or an isolated island. There is almost no way for different islands to connect and, therefore, they cannot access updated states or information from each other.
Advantages and Challenges of Multiple Chains
Advantage 1: Scalability
As the user base of blockchain increases, scalability becomes a crucial issue. When there are many users, it is easy to encounter problems such as slower transaction speeds and higher transaction fees, putting pressure on large blockchain networks.
A multi-chain network can provide a solution by employing parallel processing, reducing congestion on a single chain, and enhancing overall scalability. If the blockchain world becomes a mainstream trend in the future, it will be necessary to find a blockchain capable of accommodating billions of users, which can only be achieved through multi-chain or other scaling solutions.
Advantage 2: Privacy and Security
Imagine if all data is “locked” on one island, it would be difficult for malicious actors to attack that island from the outside. Developers can enhance the security of the “island” and effectively protect the safety of its residents.
Many chains also prioritize privacy, allowing participants to maintain the confidentiality of certain transactions, making it harder to trace the amounts and wallet addresses of each transaction.
Advantage 3: Customization for Specific Users
Different industries and applications often require different functionalities. Through multiple chains, it is possible to develop customized blockchains that optimize efficiency and meet the specific needs of industries such as supply chain management, finance, and healthcare.
Challenge 1: User Limitations
Since different blockchains can be considered as separate closed systems, like some iOS apps that cannot be used on Android systems, developers need to develop DApps specifically for the chosen chain unless they develop for multiple chains simultaneously. This means that DApps on a specific chain may not be applicable to millions of users on other chains, even if Ethereum has a large user base.
For application developers, more users are always better. Even with a large number of Ethereum users, they may miss out on millions of users on other chains.
Challenge 2: Security
If all global users enter the blockchain world in the future, it is necessary to ensure secure communication and transactions between users on different chains.
The current solution is to build a “bridge between two islands” so that information can be transmitted between different chains. However, these “cross-chain bridges” are often the weakest link in terms of security, as the security designs of different chains cannot protect each other and become prime targets for external attacks, posing a threat to users on the chain.
Therefore, Ethereum founder Vitalik Buterin has also suggested that the future may be a thriving “multi-chain” ecosystem rather than relying on “cross-chain” ecosystems.
What does the future hold for multi-chains?
Although Ethereum is currently one of the most secure and widely used smart contract platforms, the increasing number of users has led many to seek cheaper alternatives. This phenomenon has prompted developers to see the opportunity to build platforms that compete with Ethereum, leading to the development of a multi-chain ecosystem.
In the future, a single blockchain may not dominate, but blockchains that can integrate various assets and chains may still hold prominent positions.
It is more likely that we will see the coexistence of multiple blockchain networks, each with its unique ecosystem and the ability to interact with other networks.
We can already see the rapid development of protocols such as cross-chain bridges, which lay the groundwork for a future concept where multiple interconnected blockchains exist.
References:
Techopedia, Cointelegraph