The Fast-growing Multi-chain World: Development in Public Chains
2021 was the year when the public chain ecosystem development finally entered its growth phase, and the multi-chain world became a reality.
Public chains run on a peer-to-peer network and are accessible for anyone to view, 6read, or write data on. These are also permissionless blockchains since no one needs permission to access them or participate in them.
Unlike traditional financial systems, the applications built on these blockchains are decentralized and distributed, where all their participants control decision-making.
Because, here, you do not need any independent third parties to establish trust, there is no need for legal consultants and other such parties that establish trust or verify authenticity, which significantly lowers the cost.
Until now, Ethereum led the smart contract innovation with thousands of decentralized applications (dApp) built on the platform. However, this leading layer 1 blockchain has been struggling to keep up with the demand as crypto adoption proliferated and NFTs took the sector mainstream.
But with crypto going mainstream and the market seeing an influx of new users, the blockchain world is expanding beyond Bitcoin and Ethereum. Through low cost and faster transactions, different public chains aim to solve the pressing problems of Web3, which is necessary to onboard the next billion users to crypto.
The multi-chain world
The launch of new DApps is not just within the NFT space but also DeFi, GameFi, and SocialFi, which has made the Ethereum network almost unworkable. In fact, the congestion, slow speed, and high cost of the Ethereum network led to the rise of several public chains.
These new public chains are building their own ecosystem with different projects for DEXs, yield, lending, assets, staking, minting, and more. And that is the big story of 2022.
These chains have caused Ethereum’s market share to drop to 62% by the end of 2021, compared to its dominance of 96.8% in 2020. However, not all of these new chains are competing against Ethereum but working with the Ether ecosystem.
TOP Network is one such blockchain that is creating Ethereum-compatible shards of TOP mainnet. Currently, we are taking the lead in realizing full-state sharding and innovatively applied technologies such as double-layer sharding, double-layer lattice, and DAG data structure-based parallel PBFT.
TOP Network is a high-performance public blockchain platform suited for real-world applications. Built exclusively for Web 3.0, TOP Network not only offers much lower transaction costs but also brings down the cost for miners to participate in mining. Not only that, but we also continue to improve the transaction speed.
Bridging different chains
Besides layer 1, public chains are of two other types, i.e., side chains that are Ethereum expansions compatible with EVM and layer 2 solutions that complement Ethereum by processing partial transactions off-chain.
Some public chains have emerged specifically to focus on the booming trends: NFT and GameFi. For instance, Ronin leaped to become the 2nd largest NFT public chain. This makes sense because GameFi requires playability, fluidity, higher yields, higher performance, and lower transaction fees.
In 2021, all the public chains managed to amass nearly $300 billion. Among these public chains, L1s adopted different strategies to build their ecosystem and steal market share from Ethereum.
With the rise of alternative public chains, we are now also seeing a growth of cross-chain bridges. Today, the blockchain world has fragmented into multiple chains, which is raising the need to bridge between these different solutions and projects.
In addition to various cross-link bridges, cross-link bridge aggregators have also become popular among users and developers. These aggregators help users directly exchange between different assets while cross-chaining assets.
In the light of the increasing amount of public chains populating the cryptocurrency world, there has been an emerging demand for interoperability across chains as well in order to allow developers to build their use cases more efficiently.