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Cryptocurrencies i block chain these are two terms that we will meet more often in the future. However, this digital payment can not be used in such an optimal way as we know it, for example, from our paper money or credit cards. And this is exactly the problem that needs to be resolved.
Scalability the main problem of the blockchain network
The cryptographic currency was created mainly to serve as the optimal means of financial exchange: paying bills and purchasing products and services. It is a really convenient way to make payments because it allows you to avoid banking fees and processing payments by third parties. However, with the development of the blockchain network, new problems emerged related to its use. You need to resolve them to provide a quick and convenient environment for processing payments and creating decentralized applications.
The development of decentralized applications requires a wide range of additional tools to implement them in case of intrusion. This has a negative impact on system security. Another problem is the negative government policy affecting the decentralized payment system and cryptographic currencies. However, the main problem at this stage of development is the problem with the scalability of the network.
As the number of transactions increases, these systems become slower, more expensive and unbalanced in the case of payments. Therefore, scaling becomes a factor that inhibits wider acceptance of blockchain systems. In addition, system scaling is not as easy as deploying more resources (more nodes slows down the network because more time is needed for information to reach the new node using the "gossip" method and more time is needed for the computation of the new node)so there is a need to develop better scalability projects.
Blockchain network growth despite problems
Sieci blockchain and scattered networks of registers are exploding from day to day. Migration to new networks is becoming a necessity as more and more people pay attention to the emerging technology and its capabilities.
The number of blockchain projects is growing partly because developers think outside the box trying to exploit the possibilities of this technology. This increase is also due to the fact that no perfect solution will be able to satisfy all the needs related to blockchain at the same time.
Blockchains are a good example STEEM i BitTubethat aim to decentralize social networks, thus giving people the right to freedom of expression and equal rights to monetise content from every corner of the world.
The project in turn VeChain using blockchain technology, it strives to build a trust-free and distributed business ecosystem that is self-sufficient and scalable to improve supply chain management.
Another interesting example is our home project GOLEMwhich is decentralized "Supercomputer"that everyone can access.
Finally, it is worth mentioning such projects as NEXUS, STELLAR, DASHor NYEAR, which aim to create highly functional global payment networks to address issues related to low delays in remote areas such as Africa.
There is one thing that distinguishes among the spread of blockchain projects. All chains and accounting books implement a different set of transactions and process different amounts of data. It is also becoming increasingly evident that there are different networks and blockchains for specific trade unions, religions, social organizations, and government departments.
The rapid development of the blokchain network will lead to the creation of many different types of networks. One of these technologies, which is becoming more and more visible, is technology Cross-Chain (cross-chains).
What is Cross-Chain technology?
Technology Cross-Chain is becoming an increasingly hot topic for discussion, seen as the ultimate solution to increase interoperability between blockchains. Cross-chain is a new technology that aims to transfer value and information between different blockchain networks.
Transfers between the so-called Cross-Chain - So far, you cannot make a simple transfer between two different cryptocurrencies. This is because cryptocurrencies must first be exchanged before they can be transferred through a transaction.
Increased use of existing networks, such as Bitcoin and Ethereum, has led to many key issues such as economic constraints and scalability. As discussed above, most blockchain networks operate in isolated ecosystems because they deal with solving unique needs.
The fact that the chains work in isolation made it impossible for people to take full advantage of the technology of accounting books. The inability of various chains to communicate with each other prevented people from taking full advantage of the advantages of blockchain technology. Cross-chain technology aims to solve all these problems, enabling interoperability between the chains, thus facilitating their mutual communication and information exchange.
The need for interoperability of the blockchain network
As the blockchain industry grows and grows, interoperability will become the core feature of any project to survive. It makes no sense that hundreds of chains are completely separated from each other, competing for market share and value.
Without interoperability, the blokchain industry is like a gigantic chain of islands with no boats or bridges. It is possible to exist on one small island and live there with the community, but you can not jump on another island without a lot of effort. In fact, in order to move to a new island, you have to completely give up your previous community and sail to another piece of dry land.
When significant innovations appear on one of the islands, they are limited to the island where they were developed. This is true, even if the same innovations would be beneficial to any other community in the island chain. This hinders progress, because the inhabitants of different islands can not cooperate with each other and use their ideas to promote better functioning of the entire island chain.
Cross chain "bridge" to mass cryptocurrency adaptation?
Many creators of type projects Cross Chain, thinks the building "Bridges" is not only beneficial, but absolutely necessary for blockchain projects to connect with each other and ensure interoperability. Belief in maintaining the spirit of cooperation, not competitiveness. There is plenty of room for many crypto projects on the market and they are working hard to unite the blockchain industry to be successful. It is often said that combining different blockchains would be the key to mass adoption of blockchain ecosystems that are comparable to making the Internet in the 90s by linking different intranets via TCP / IP.
In the next post I will prepare a short description of a dozen or so cross-chain projects to further describe the topic of this solution.
Greetings and to read next time!
