In this new era of decentralization, we are talking a lot about cryptocurrencies and how they can be useful for the future of currencies globally. Many big companies have started investing in cryptocurrencies and they are also spending a lot of money in creating their blockchains for their use. They create either a first-layer blockchain or a layer 2 blockchain on any of the existing and popular blockchains.
When VSC becomes a hit on Hive, people should technically be able to deploy their smart contracts on Hive and have their blockchain running as a second layer on Hive with multi-sig capabilities.
Soneium by Sony Bank
I recently came to know about this when Sony Bank in Japan came up with their own layer 2 blockchain called Soneium. The recent big news on their blockchain was that they have now launched the first stablecoin pegged to yen. The claim is that they are going to create a future where the transactions are safe and secure compared to the way the banks handle the transaction data.
It is not just Sony Bank that is taking this initiative but I see that the Japanese government is very supportive of this idea where companies create their secure payment systems and financial solutions. They encourage using the latest technologies like blockchain technology for this purpose. Some companies create blockchains for their use first and then leave it to the general public to consume. Some of these blockchains are a centralized thing and some are even decentralized.
Spreading too thin
I fear the fact that there are so many blockchains available and the fearful fact is that most of these blockchains do the same thing. This is a problem because if many native blockchains emerge, it can be hard to onboard users by convincing them. It creates a competition where people who are believing in the growth of a particular blockchain will have to come up with challenging and exciting features to keep up.
During my first few bull market experiences, I remember that the top coins had their demand and the other altcoins had less demand. Today if we have more than a thousand blockchains, it can be hard to compete and the investments would be spreading too thin on certain blockchains. The success of the blockchain can be dependent on what they are offering and how good it is at marketing its blockchain.
The future is going to be moving in this direction. Today we have so many people who understand this technology and the companies want to have their blockchain created and make it become a hit instead of using an already available blockchain. Ripple Labs is one good example of this and they were the first in the market to create their blockchain for a specific need even today there is a huge demand for the services of Ripple. Apart from what is happening, there are also people investing and trading on Ripple. This will happen. We have to also understand that some companies try to take this approach and fail too.
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