Multi-chain strategies need to be developed for the long-term, says Diane Dai of DODO.
When it comes to 2022 crypto trends, interoperability is the name of the game. It’s what binds the interlocking puzzle of DeFi, NFTs, metaverse and utility use-cases.
Indeed, the sheer volume of new users, assets, and platforms that have appeared in the blockchain world over the past few years has made it clear that no one chain will ever rule them all. The ecosystem is simply so large and diverse that no single blockchain can provide all of the necessary tools to support it, much less scale to accommodate it. And yet, not all blockchains are created equal. It’s certainly possible – even likely – that many of them will not exist in the future.
Therefore, decentralized application (dApp) builders that are taking a long-term approach to development need to be smart about how, when, and where they choose to deploy. However, there’s a fine line between being prudent and being overly discriminating. Builders need to strike the right balance between being discerning and prioritizing inclusivity.
Therefore, it is unwise to prematurely rule out any blockchains based on perceived ideological differences or apparent compatibility. For instance, as the interoperability narrative develops, two distinct camps are emerging: Ethereum Virtual Machine (EVM)-compatible and non-EMV-compatible chains (in other words, chains that are capable of running dApps intended to operate on Ethereum, and chains that are not).
To create the best long-term growth strategies, developers must take a “both/and” approach to their multi-chain deployment – one that is inclusive of chains that belong to both of these groups. Still, it’s important to examine what’s happening in the short term when it comes to the development and use of these blockchains.