As blockchains obtain steady fine-tuning and enhancements, builders are figuring out essential points which are limiting the advances in interoperability and scalability of the know-how. One such concern is named ‘blockchain fragmentation’. Because the time period suggests, it refers to a scenario the place the ecosystem of a blockchain is split into a number of smaller on-chain networks, every facilitating a unique job effectively. The phenomenon of fragmentation is thought to complicate blockchain adoption. It usually leads builders to decide on between a number of blockchain options that don’t functionally align with one another.
Devices 360 spoke to Rohas Nagpal, chief blockchain architect at Hybrid Finance Blockchain (HYFI), a layer-1 blockchain, to grasp the method of blockchain fragmentation and the way it impacts the ecosystem.
“Blockchain fragmentation occurs when completely different blockchains can not work together easily. Every chain works like an island, with its personal guidelines, tokens, and techniques. This lack of connection limits the potential of blockchain know-how,” Nagpal mentioned.
When a blockchain fragments, it primarily obstructs the community from supporting a unified system for worth alternate to its full potential.
The constantly growing variety of Layer-2 blockchain networks has made fragmentation a extra widespread concern with blockchain networks in recent times, Charles Wayn had written in a printed opinion again in October 2024. Wayn is the co-founder of a Web3 onchain distribution platform named Galxe.
In response to Nagpal, fixing the issue of blockchain fragmentation will make it extra environment friendly to assist a number of usecases whereas additionally bettering the alternate of knowledge and worth between completely different blockchain ecosystems.
There are measures that blockchain builders can take to start out lowering the dangers of fragmenting blockchains, Nagpal mentioned, including that builders ought to “construct instruments like blockchain bridges to attach completely different blockchains.”
He additionally recommends that builders arrange widespread guidelines for APIs and blockchain-native tokens to work effectively collectively in synchronisation. Creators of crypto wallets can even carry out storage options to handle property from a number of blockchains on one platform.
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