Executives at Korea Blockchain Week predict that the future of blockchain will be characterized by interoperability and the end of “chain tribalism.” They argue that current solutions are not effective and are vulnerable to hackers. Several products set to be released this year aim to address these issues and revolutionize blockchain interoperability.
Vance Spencer, co-founder of venture firm Framework Ventures, believes that with upcoming solutions like Chainlink’s Cross-Chain Interoperability Protocol (CCIP), the specific blockchain a project uses will no longer matter. He explains that startups typically start with layer-2 solutions and eventually develop their own roll-up, creating a standard in the process.
In this future, cross-chain interoperability will shift the paradigm, rendering the choice of roll-up irrelevant. CCIP, for example, enables users to have assets on one chain and interact with contracts on another through cross-chain messages instead of bridges.
ZetaChain core contributor Brandon Truong explains that ZetaChain operates similarly to CCIP but also allows for programming interoperable smart contracts. He predicts that interoperability will become the norm among new app builders, reducing chain tribalism and increasing focus on utility.
Another upcoming product, MetaMask Snaps, will allow developers to launch apps that expand the functionality of the crypto wallet, enabling compatibility with other blockchains such as Bitcoin, Solana, Avalanche, and Starknet.
At Korea Blockchain Week, Georgios Vlachos, co-founder of cross-chain protocol Axelar, anticipates a future with hundreds of chains processing significant economic activity. He believes that multiple blockchains are necessary because a single blockchain cannot handle more than 10 million transactions per day. Vlachos emphasizes the need to scale the blockchain infrastructure to become the foundational architecture for Web2.
Currently, users rely on blockchain bridges to send assets between networks. However, Ramani “Ram” Ramachandran, founder and CEO of Router Protocol, believes that bridges are prone to hacks and will be replaced by other cross-chain solutions. Router Protocol plans to launch a solution that sources liquidity from multiple wallets, reducing the risk of hacking.
The need for immediate cross-chain interoperability is not only beneficial for users but also crucial for the industry’s legitimacy, according to Chainlink co-founder Sergey Nazarov. He argues that successful Web3 apps must connect to all blockchains seamlessly, allowing users to use apps across chains without any concerns. Nazarov believes that the ability to provide reliable systems and ensure the safety of users’ value when moving between apps is essential for the industry’s growth.
Nazarov sees the banking system as the next driver of Web3 adoption due to the value they see in blockchain and digital assets. Chainlink is working on connecting banks to each other and public blockchains to facilitate the flow of value into the blockchain world.
Overall, the blockchain industry is moving towards greater interoperability, scalability, and security, which will pave the way for real-world applications and the integration of traditional financial systems.
Will genuine cross-chain interoperability soar in 2023?