As 2021 is coming to a close, one of the major trends it has set for the crypto space has been the rise of multiple smart contract blockchains. The Fuse Network blockchain has also been a major beneficiary of this process.
It is becoming increasingly clear that no single smart contract blockchain will end up being completely dominant over the decentralized application (DApp) space. There is a major trade-off between centralization and transaction speed on base-layer blockchains that cannot be addressed through pure hardware or cryptography advances. Layer-2 solutions can alleviate the transaction loads on layer 1 protocols but they come with their own limitations, including complex exit procedures, composability and so on. As our Head of BD Isaac Rodgin argued back in April, interoperability is possibly the only means for solving the famous Scalability Trilemma.
All this means that decentralized EVM chains like Fuse Network will continue to be attractive for DApp projects looking for fast and cheap transactions.
The blossoming of smart contract chains has, of course, not been without its own challenges. It created an urgent need for interoperability solutions enabling assets to circulate among chains with the lowest possible friction.
Fuse placed its bet on interoperability early on. We launched a two-way bridge to Ethereum soon after the chain had become open to the public and the one to Binance Smart Chain in April this year. Currently, the management of the bridge has been transferred to the newly launched all-in-one FuseFi DeFi platform.
We have also worked on getting Fuse’s native FUSE token listed on major DEXes on those chains and launched multiple liquidity rewards programs to facilitate trading activity. We also brought major tokens from Ethereum and BSC to our own ecosystem.
At present, the future of interoperability looks brighter than ever. A whole host of platforms focused on ensuring interoperability among smart contract blockchains have put their solutions on offer. And decentralized finance (DeFi) and non-fungible token (NFT) protocols are increasingly opting for supporting multiple chains natively.
Stay tuned for the upcoming updates as the Fuse team keeps moving forward in its quest for maximum connectivity with the wider crypto space.
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