Multi-Chain dApps Open the Doors to DeFi
Smart contracts revolutionized the crypto markets by expanding what was possible on the blockchain.
As the first smart-contract platform, the Ethereum (ETH, Tech/Adoption Grade “A”) network is home to many decentralized applications (dApps), which facilitate everything from decentralized social media platforms to lending platforms.
But Ethereum isn’t the only name in the smart-contract game anymore.
Ethereum’s drawbacks — its high transaction fees and slow processing times — have made room in the market for alternatives like Cardano (ADA, Tech/Adoption Grade “B”) and Polygon (MATIC, Tech/Adoption Grade “B-”).
So, how do dApps built on the Ethereum network compete if users are moving to other networks?
That’s where multichain capabilities come into play. According to Chris Coney in this week’s Weiss Crypto Sunday Special, “dApps will probably go more multichain as they mature themselves. If you were building a brand-new protocol, well, it makes more sense just from a complexity point of view to deploy it on a single chain, and then once you've established yourself, you can branch out.”
Weiss analyst Alex Benfield agrees, adding that the current complexity in decentralized finance (DeFi) — owning multiple wallets to bridge assets across chains to purchase, lend and borrow crypto — isn’t suited for mainstream adoption.
In order for the masses to access DeFi, dApps need to access multiple networks.
Multichain dApps could be the future of DeFi, so you don’t want to miss this week’s Weiss Crypto Sunday Special.