Game of Thrones in Blockchain: Multi-chain Networks Battle for Supremacy
Multi-Chain Networks Key to Blockchain’s Long-Term Development: Huobi Research Institute Report
A new report by Huobi Research Institute, a leading blockchain research organization, has identified multi-chain networks as key to the blockchain ecosystem’s long-term development due to the security, decentralization and scalability they offer. Titled “Game of Thrones in Blockchain: Multi-chain Networks Battle for Supremacy”, the report cited the benefits of multi-chain networks such as a better user experience, greater ecological composability, and a fast-growing footprint.
Multi-chain networks are networks that modularize a certain layer of the blockchain hierarchical structure, supporting not just rapid chain building but also serving as an extension layer of other blockchains. While there are still some issues such as disputes over their flexibility and security, and how to make native assets better capture the value of ecosystem evolution, a review of the entire Layer 1 blockchain shows that only multi-chain networks could significantly open up more options and possibilities.
Huobi Research Institute cited the following four characteristics that underpin a strong multi-chain system: 1) Ability to modularize, quickly build new chains, and rapidly develop ecological chains; 2) Ability to ensure the efficient interaction of the Layer 1 blockchain in the ecosystem, including those of asset and information; 3) Ability to guarantee the basic security of the whole multi-chain network; (4) Ability to collaborate and manage multiple sub-ecosystems within a multi-chain network.
The concept of multi-chain networks started with Ignite (previously known as Tendermint) which launched its blockchain-interoperability protocol Cosmos in 2017. By enabling the use of modular tools to build chains, the intent was to make it easier for more individuals to build their own blockchain and form a powerful ecosystem network under Cosmos.
Since the beginning of 2022, multi-chain networks have been in the spotlight due to growing discussions on Layer 1 blockchain infrastructure. The focus has been largely on whether multi-chain networks are superior to cross-chain and whether they could surpass Ethereum, whose challenge of network congestion is well known.
For example, Ethereum founder Vitalik Buterin said in a Reddit post in January that the future of blockchain would move towards “multi-chain” rather than “cross-chain” due to security concerns, sparking an intense discussion in the whole blockchain industry. Meanwhile, a series of moves by multi-chain networks has also drawn much attention. Cosmos released the upcoming EVM-compatible blockchain Evmos last December, which was followed by the launch of the first batch of Polkadot parachains in January. Further, the Octopus network has initiated plans to launch its multiple application chains.
Huobi Research Institute researcher Yeyan Wei, who authored the report, said: “Even in the face of the Blockchain Trilemma, multi-chain networks offer a better solution in terms of security, decentralization and scalability. Moreover, multi-chain networks’ ecological pattern and development are what the entire blockchain industry needs to emulate.
“What we need is not cutthroat competition or a zero-sum game involving other protocols and ecosystems. Instead, the entire industry should cooperate to solve significant challenges and build Web3. This is a more decentralized, inclusive, innovative and promising way to span the bull and bear cycle of the industry.”
To download the full report, click here.
Huobi Blockchain Application Research Institute (referred to as “Huobi Research Institute”) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.
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