The adoption of blockchain technology across industry segments is currently at its all-time high. With innovative applications of blockchain technology emerging each day, the number of projects offering decentralized solutions to address real-world problems have registered tremendous growth in recent times. However, the emerging new projects as well as existing ones continue to hunt for the ideal protocol that meets all the requirements.
While there are plenty of different blockchain protocols with their own advantages, they all suffer from legacy issues that prevent them from successfully overcoming the blockchain trilemma. As established on multiple occasions, no single protocol has managed to excel in all the three fundamental aspects of a blockchain viz., decentralization, security, and scalability. These issues combined with recent developments in the industry that led to the downfall of certain protocols, taking down almost all dApps built on the protocols has renewed the interest in finding the fool-proof decentralized infrastructure.
Make the Best out of What’s on Offer
In the recent past, the crypto industry has discovered that the only way to address the challenges posed by the Blockchain trilemma is to opt for a multichain approach. Multichain compatibility will allow projects to operate on multiple blockchains, tapping into the best features of each supported protocol for its users’ benefit.
While the multichain approach is theoretically sound, connecting a dApp to multiple protocols is easier said than done. In the current state, each blockchain protocol follows its own set of standards for the development, storage, and operation. As a result, the applications built over each protocol operate in their own silos, leaving very little room for interoperability.
Achieving Multichain Compatibility
The straightforward way to achieve multichain compatibility in the conventional setting is to create a version of the dApp on each supported protocol. A time and resource intensive process, nevertheless, but building native applications for each protocol has so far been the only efficient way to achieve cross chain compatibility. With the dApps in place, the ecosystem tokens for each project needs to operate on each supported blockchain, something that can’t happen without external intervention, thanks to the siloed nature of protocols.
To enable the movement of value and utility between different protocols, token bridges were created. The token bridges act as a conduit, receiving tokens from one protocol at one end and emitting a token native to the other connecting protocol, possessing similar value and utility at the other end. To ensure the bridged token’s compatibility on the other protocol, the token bridge issues wrapped tokens, which are native tokens representing an equivalent value and utility as the original token on the primary protocol. While the wrapped token enters circulation on the other blockchain, the native token must be removed from circulation, which in this case is handled by custodians. These custodians are either trusted third parties or a dedicated team/department that is part of the project itself. The tokens locked in the vault during the emission of wrapped tokens will be pushed back to circulation once the wrapped tokens on the other protocol are burnt by bridging them back to the parent blockchain.
While wrapped tokens play a significant role in promoting multichain compatibility, it involves multiple third parties, which leads to increased centralization and a possibility of token duplication across protocols leading to dilution of token value.
Another approach to bridging tokens across protocols is by using smart contract bridges which are designed to lock the token on one blockchain and release an equivalent native token on the other protocol. In this case, the automated mechanism ensures that the token supply remains constant throughout. However, for such a system to work, the project should have both native dApp and token operational on both chains.
Metachain: An Attractive Alternative to Achieve Interoperability
Achieving multichain operability has become easier with ShuttleOne Network’s Metachain solution. The Metachain ecosystem is created to provide an efficient and highly flexible option for developers and project owners to create truly interoperable dApps that can work seamlessly on any supported protocol. Metachain eliminates the need to create multiple versions of the dApp on each protocol. Instead, a single application created on the Metachain ecosystem can operate across blockchains, resulting in plenty of savings in time and resources.
The ShuttleOne Network works closely with the development teams of respective protocols to provide bridging capabilities without compromising on decentralization or security. As a result, projects can easily create native tokens on each supported protocol that can be bridged to any other protocol through the Metachain bridge. The lock-and-release mechanism adopted by Metachain stores the tokens begin bridged from the first protocol within the smart contract and releases an equal number of native tokens locked within the smart contract to the recipient bridge.
Metachain’s bridging process guarantees the integrity of the project’s tokenomics by preventing duplication of tokens while offering them a choice to operate on any protocol and cater to users from across all blockchains. The seamless bridging and universal operability of blockchain applications on the Metachain allows projects to tap into liquidity from virtually the entire blockchain ecosystem and use the best features each protocol has to offer to meet the changing demands for their operation.
Cross-chain operation capabilities imparted by ShuttleOne Metachain even reduces the dependency of projects on a single blockchain, enabling ready migration from one protocol to another in case one of them is compromised. With Metachain, projects do not have to worry about the security, decentralization and costs while choosing a particular protocol to build their dApp as they will be able to operate on any chain, leveraging each protocol’s strengths as they go along.
While ShuttleOne Network prepares to officially launch the Metachain solution, its Founder and CEO Zhuang recently revealed that the cross-chain capabilities offered by Metachain to a project’s crypto tokens is going to be extended to include NFTs. Soon, there will be more exciting developments as ShuttleOne continues to develop innovative features with a potential to disrupt the entire crypto space.
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