Atomic Swaps and a World of Multiple Blockchains

Currently, blockchain technologies are undergoing a similar transition. Since the introduction of Bitcoin, several alternative cryptocurrencies and blockchain technologies have been developed, however in the majority of situations, they are incompatible. Dash cannot be sent to the Bitcoin network, and neither can Bitcoin be sent to the Ethereum blockchain. A blockchain resembles a collection of incompatible LANs. A centralized third-party exchange is the sole means to convert from one cryptocurrency to another.

Nevertheless, this may soon change. The cross-chain swap exchange is something that you should know about. The concept of an atomic swap has existed for some years, but this was the first time it was implemented in a live setting. Atomic swaps essentially enable two or more parties to trade one cryptocurrency for another directly on the respective blockchains, without the necessity for a third-party exchange.

Atomic swaps are not the sole method for achieving cross-chain compatibility. In addition, there is ARK’s Smartbridge Technology, which enables users to activate events on one blockchain from another. Using Ark, you might, for instance, swap LTC to USDT. As these sorts of technologies advance, the concept of competing, incompatible blockchains may become as archaic as incompatible local area networks.

Choose Your Cryptocurrency

Meaning? How might a blockchain-based world look? Blockchain projects highlight different use cases. One blockchain currency may be wealth storage, another digital cash, and another for smart contracts. Not just this will differentiate ventures. Many cryptocurrencies might become industry standards. Digital storage, healthcare, and gaming companies accept several cryptocurrencies. Even sectors that create private currencies with public transaction ports are possible.

How will clients pay if each industry takes a different currency? Because switching currencies is easy, any person may select which cryptocurrencies to spend and save. Even if her digital storage fee is in one coin and her doctor’s bill is in another, she would pay with her selected currency, which would be translated promptly without a third party. In the future, several currencies will thrive and be used by most.

Multiple blockchains have advantages. It may solve the scalability problem initially. What if there were thirty, forty, or even more blockchains? Miners and node owners may move across blockchains as long as it’s profitable, with a balance defined by free market competition for their services.

Using several cryptocurrencies supports a completely free money market. Each cryptocurrency project would struggle for consumers, miners, and corporations. By 2035, 2025’s most successful currency may be replaced by a better, more agile competitor. Currency trading is as easy as changing lanes on a highway.

Efflux-Free Future

This potential multi-blockchain future underscores one point: the real conflict is between cryptocurrencies and money. Fiat currency creators and keepers battle a free money market like a two-year-old persuaded to sleep. When consumers, merchants, industries, and even AI machines may choose their chosen monetary unit without friction, fiat will be relegated to the government.

Fans of cryptocurrencies should focus on government-backed fiat currencies, not the crypto cyclical firing squad. Being a maximalist of one crypto is like believing everyone must use Novell. Future economies will be dominated by several blockchain-based technologies, not a single currency.