Blockchain and Interoperability: Globalization 3.0
Before globalisation brought the world together, the production and sales of products largely took place locally and within silos. Much like the pre-globalisation world, the current crypto space is broken into silos, with liquidity fragmented across a range of L1s, L2s and applications living on those chains.
However, it is also such fragmentation that is hindering the crypto space from mass adoption. Interoperability is the key that can empower this industry to usher in its own form of globalisation by allowing for more specialisation in individual chains, improved end-user experience, and an overall more efficient implementation of blockchain technology.
Current solutions do exist to bridge the gaps between the non-interoperable ecosystems in various ways, such as centralised exchanges (CEXes) and bridges, although these do come with their own drawbacks as well.
Natively interoperable solutions have also sprung up in their attempts to solve this issue. Full Chain DEXes like THORChain and SifChain that run liquidity pools on multiple chains at once, facilitate swaps with their respective intermediary tokens. Network of Networks, sometimes referred to as L0 solutions like Cosmos and Polkadot, have also emerged as popular solutions attempting to tackle this issue.
In its current state, no single blockchain has full dominance over the entire crypto space, whilst every chain still remains unable to conquer the Blockchain Trilemma on their own. However, we do believe that the way to surpass the Trilemma is via the path of interoperability, specifically vis-à-vis natively interoperable solutions.
Ushering in the globalisation of the crypto space could bring about potential network effects, and push us closer to mass adoption. With the crypto space currently at an inflection point, we really do look forward to an environment where all chains are connected with one another in a mutually-beneficial manner.
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