The Future of Cross-Chain

As the cryptocurrency trend is raising we are seeing more and more blockchains but that doesn’t mean that all of those will be used in cross-chain mode, there might be only one left in the end for retail, or one per country because there is no need for more than Ethereum 2.0 with a lot of nodes and layer 2 solutions. Solana can take the second place thanks to their speed and low cost of transactions but in the end the blockchains that are currently competing will have to specialize and improve, because there will be only one or two blockchains used by the general public since it costs less to not bridge from one blockchain to another. Today there are only two or three types of databases used mainly, the rest of them share the 1% of the market.

Exchanges like Binance are gigantic but they can only transit one blockchain in the end, theirs like Binance’s which is in the top 100 most visited sites worldwide. But they will have to find the improve and find the cheapest, fastest and most interoperable route in order to avoid additional costs for the bridging because many will not hold and can quickly become useless. Therefore, there is a huge possibility that ETH 2.0 will overpass Solana in speed and cost of transactions, also exceed Visa, PayPal, etc.

But there is pros and cons with using the Ethereum blockchain, it is decentralized and therefore it has to be regulated, otherwise it will become illegal. Blockchains like Binance can come in play since they are easier to be regulated because of their centralization and users can turn to them since they are offering fast and cheap transactions, of course, Binance will have to improve a lot to catch other blockchains such as Solana but they have a room to improve their blockchain and end up like winners by improving their security and regulation.

Users from USA never wanted it, but their exchanges cannot take a risk of having a token like Coinbase or Kraken and since Solana is from USA, they can go with her. In the end, exchanges may become the upper hand and if Binance continues to rise then it can replace Ethereum simply by not going though their network but for this they will have to list tokens that use Ethereum.