Is a Multichain World the Answer to Web3’s Problems?
There is a fierce competition among various blockchains for market share in the web3 space. Some chains focus on growing the ecosystem, while others prioritize scaling or changing the financial landscape. While a few contenders vie for the top spot, some believe that collaborating towards a multichain world could solve the larger challenges in the industry.
During a panel at TechCrunch Disrupt 2023, Grace Torrellas, VP of product and product lead at Polygon zkEVM, emphasized the benefits of a multichain world. Polygon is a layer-2 blockchain focused on scaling the layer-1 blockchain Ethereum. Torrellas stated, “A multichain world makes it much easier for us to start moving the technology forward. We are building an ecosystem of multichains that will be interoperable.”
Mo Shaikh, co-founder and CEO of layer-1 blockchain Aptos Labs, shared the same viewpoint. He believes that a multichain world is inevitable and the combined efforts of all participants in the industry will yield substantial results.
However, not all blockchain leaders share this perspective. Anatoly Yakovenko, co-founder and CEO of layer-1 blockchain Solana, argues that a single chain will prevail. According to Yakovenko, it doesn’t matter how many settlement environments exist; what matters is the execution environment for transactions. He believes that blockchains need to focus on consolidating all crypto transactions and a significant portion of financial transactions into a single unified layer-1 chain.
Yakovenko acknowledges that his viewpoint may contradict popular opinion. However, he emphasizes that hardware advancements in the next 20 years will result in a 1,000x improvement in capacity on a single, giant atomics state machine. This would allow for the consolidation of all transactions in a single place, leading to increased efficiency and lower costs.
While the concept of having everything in one place may seem appealing, it may also create concerns about centralization. Take Google as an example – while many rely on its search engine, email, and cloud storage services, most people would not want it to be their banking app as well. Maintaining a balance between consolidation and diversity is crucial for innovation and ensuring that various needs and preferences are met.
In conclusion, the question of whether a multichain world or a single chain will dominate the web3 space remains a topic of debate. While some argue for the benefits of collaboration and interoperability, others emphasize the efficiency and cost-effectiveness achieved through consolidation. Finding the right balance will ultimately shape the future of web3 and ensure its continued growth and success.
