As more and more businesses started to adopt blockchain in their operation, there are a considerable increase in the number of blockchain networks. Therefore, to work together and enhance close-knit collaboration, we need to find ways to connect blockchain networks or create a blockchain bridge. However, due to the differences between separate blockchain networks, businesses today are facing various obstacles during creating cross chain processes. Our article today will list some reasons to demonstrate that creating cross chain is your next journey,
Difficulties In Building Cross Chain App
Unlike new, modern and fast blockchain networks, there is some blockchain that still brings the developers under-standard experience with slow processes, high fees and slow-response manipulation. Therefore, when trying to connect those platforms and create cross chain, the developers need to try to eliminate those weaknesses and improve the network for all the businesses to work together. Usually, the main goal of building a blockchain bridge is to speed up transactions at affordable and cheap costs.
Obstacles In Cross-chain Transaction
Cross-chain transaction is not a single task. Blockchain network is under tight protection, including their specific regulations, settings and protocols. Therefore, you may find it difficult to conduct direct token transactions among different networks and the inconsistency may vary from this network to another. Also, the developers need to define incompatible points to create suitable bridges, which can help us run cross chain transactions smoothly.
As we mentioned, the cross chain interaction may encounter low traffic and congestion and results in a large number of uncompleted transactions. If you are using some blockchain platform like Ethereum, it is highly necessary to build a bridge. The connection will contribute to distributing the networks, and make them less crowded and more scalable so the transaction can proceed consistently without barriers and disruption.
Monopolization By Industry Giants
When talking about giants in the blockchain or crypto industry, we always mention Bitcoin and Ethereum, which are contributing to over 70% total market share. In other words, roughly the remaining 30% market share is competitively divided between medium and small blockchain businesses. Therefore, it is pretty hard for those businesses to get attention from their target segments, improve their products and learn from other precedented companies. Therefore, the advent of cross chain is vital as it can enhance the level of stability of large enterprises in today’s market, and thus bring more space for small companies to expand their businesses and downsize monopolization. If you want to own a certain amount of market share, developing cross chain app to link with large blockchain platforms is a strategic step.
Cross chain apps can open more opportunities for your businesses to develop, including capturing more market share, enhancing collaboration and giving better experiences. Therefore, you should consider building a cross chain app to support your business development. Also, if you still have concerns about this concept, do not hesitate to contact SmartOSC to get the best advice in up-to-date business contexts.
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