The rise of blockchain technology has increased the number of blockchain and cryptocurrency projects on the market. Each project focuses on a specific use case of blockchain technology, with some projects sharing a similar focus. However, there are no two blockchains that are the same. This could be because of the team behind the project, the community that supports it, or the way blockchain technology is used in the project. There are many blockchain projects on the market, although some projects do not have a real intrinsic value. One of the biggest questions in the blockchain and cryptocurrency space right now is whether it is possible to combine the value of each blockchain in the market to create a single super blockchain ecosystem. This idea is referred to as the multi-chain movement in the blockchain space. It has led to some divisions within the blockchain community, with some members being proponents of the action and others against the idea. In this article, we'll look at a market-dominating blockchain, the multi-chain movement's pros and cons, what the blockchain triad is, and how multi-chain action can address it.
Before we look at the projects that dominate the market, let's look at what gives a blockchain project an edge in the market.
How to Gain a Competitive Advantage
A blockchain project needs an ever-growing user base to gain traction and survive in the market, and it needs to implement as many use cases for blockchain technology as possible. Besides Bitcoin, another project dominates the cryptocurrency space in market cap. Let's see what project it was.
A Project Dominating the Market
Since Bitcoin's inception in 2008, blockchain technology has come a long way. One of the most significant innovations in the blockchain space is the ability for developers to build their decentralized applications on top of an existing blockchain. This is made possible using a new technology called smart contracts and is the main innovation in this field that has led to much more.
One of the leading players in the intelligent contract category is Ethereum, the first blockchain project that enables developers to build decentralized applications on top of the Ethereum blockchain. Developers can create various applications using token templates defined by Ethereum, called token standards, or by writing their templates and code in Solidity. Applications pay for uptime on the blockchain through a fee called "gas." The more transactions the application processes, the more gas it will have to pay to the Ethereum blockchain. This gas forms part of the mining reward paid to miners who maintain the blockchain.
Ethereum's dominance in the decentralized apps or dApps creation category has led to more projects entering the market that aim to knock the lead project off its peak. Projects like Polkadot, Cardano, and Solana are honorable mentions regarding projects aiming to compete with Ethereum. There are others, but these are the main competitors of Ethereum.
A market-dominated project does not provide decentralization of the blockchain community. Ideally, an ecosystem that allows blockchain technology to thrive will play a significant role in the future. This is what the multi-chain movement promises. Let's look at the multi-chain action's pros and cons.
Pros and Cons of Multi-Chain Motion
Removes All Monopolies in the Market
By creating a movement where all blockchains can work together and communicate through proper cross-chain communication, any blockchain market monopoly will eventually cease as the blockchain community removes majority dependency from a single blockchain project and instead becomes dependent on all blockchains in the blockchain. I Will catch up. multi-chain ecosystem
Benefits from the Value of Every Blockchain
As you may recall, for a blockchain project to gain and sustain traction in the blockchain market, it must have an ever-growing user base and apply blockchain technology in as many use cases as possible. The multi-chain movement achieves this by combining the use cases of each blockchain in the ecosystem. It also creates a community of all community members from each blockchain in the multi-chain movement.
Unlocking accurate cross-chain communication is beneficial for the end-user as they can open many possibilities in one place: the multi-chain ecosystem. Users will no longer need multiple wallets and account across various platforms to enjoy the benefits of each blockchain.
It's Hard to Be 100% Sure of the Result
The result is not easy to know, as the multi-chain movement is not yet fully formed. If some blockchain projects join the ecosystem while others do not, it could strengthen the divide among blockchain community members. On the other hand, the move could enable the technology to evolve beyond any expectation, as the resources of all blockchains in the ecosystem can be used in a single offering. Only time will tell what the multi-chain action will lead to.
Now that we've covered the multi-chain movement's pros and cons let's look at several problems blockchain technology faces.
The main problems with blockchain technology are:
- Interoperability (chain communication).
- The output of blockchain technology (transactions per minute).
It is said that these three problems cannot be solved at the same time, and this belief is called the "Blockchain Trilemma."
The multi-chain idea is a promising solution to the blockchain triad. As a multi-chain ecosystem combines the best aspects of each blockchain connected to the ecosystem, the ability to address each trilogy issue is inherited from the respective blockchains.
The multi-chain movement follows the belief that all blockchains must communicate with each other to be part of a larger ecosystem. This helps decentralize the blockchain space as community dependency on a blockchain project is reduced. The multi-chain movement is also a promising solution to the blockchain triad, as it inherits from each blockchain within the ecosystem the attributes that address every issue in the trilogy.
Posschain wants to lead the multi-chain movement by providing an ecosystem that will provide blockchain technology with the necessary resources and tools to thrive. Posschain also enables the development and deployment of many categories of decentralized applications, from gaming to NFTs to transaction systems where digital value can be traded between users. The ability of blockchains to seamlessly connect to the Posschain ecosystem and multiple use cases where the ecosystem can be used gives Posschain the qualities needed to gain and maintain traction in the market. A fascinating project, Posschain has the technical features and ease of use necessary to be considered a serious competitor to most blockchain projects that dominate the space.