Blockchain technology has massive potential but significant challenges – cross-blockchain data exchanges can solve these issues, but so far they have failed. FUSION has the answer.
Blockchain technology has really shot into the mainstream recently. A technology that was, until recently, unknown to all but the most enthusiastic cryptocurrency fans is now regularly splashed across the headlines of major media.
While blockchain came about as the building blocks of Bitcoin, and is still closely associated with cryptocurrencies, it’s also much more than that. It has the potential to change the entire internet by ushering in ‘Web 3.0’, which will be based on decentralization.
Blockchain represents a new way of handling data, using decentralized ledgers to make information more transparent, secure, and accessible. In a world where data is playing an increasingly important role in our daily lives, blockchain could be the key to harnessing and managing it more effectively.
It’s shown great promise in several trials, and is being implemented by major banks and even nation states like Estonia. It’s a challenge to traditional, centralized data management methods.
However, blockchain isn’t perfect. Many existing blockchains and blockchain-based applications have issues that need to be resolved before this technology can reach its full potential. These issues range from scaling challenges to difficulty moving value across blockchains.
Let’s take a deeper look at these issues, and the attempts to solve them.
The problems with blockchain
One of the biggest problems with this technology is the difficulty involved in transferring value from one blockchain to another. Moving data across blockchains has been tough, and they exist mainly as separate entities.
This problem extends to off-chain data, too. Smart contracts, for example, don’t currently work with data that isn’t stored on the blockchain. This seriously limits their scope, and can also result in blockchains becoming clogged with data which slows them down.
This leads to the next problem. Blockchain has an issue with scalability, and as chains grow and process a higher volume of transactions, they begin to slow down. This is particularly obvious with Bitcoin — where users frequently complain about waiting times of days and soul-destroying transaction fees when the network is busy.
The blockchain ecosystem is full of potential but it isn’t working the way it should. It’s fragmented, and dealing with bottlenecks due to scalability and speed. Blockchain’s difficulties accessing and using off-chain data is holding the technology back, stopping it from making a real impact on the world of data.
The good news is, people in the blockchain space are working hard to resolve these issues. And they’ve had some success, but there’s still work to be done.
The solutions so far
There have been several attempts to build cross-blockchains capable of sharing data. These include projects like Bitcoin Lightning, Ripple, and WanChain, which aim to untie transactions from the main blockchains and make cryptocurrencies better at working together.
These platforms have had varying degrees of success, with different approaches to the problems. Some have been more successful than others, but there’s still no clear-cut solution on offer.
That’s where FUSION comes in.
FUSION could be the best cross-blockchain platform yet. Built by entrepreneur DJ Qian, it’s an open-code public blockchain that can be used by developers and existing blockchain apps.
FUSION’s main goal is to provide the ability to move value between cryptocurrencies and across blockchains. No longer will data be confined to one blockchain, it’ll be possible to exchange between multiple parties in the cryptofinance space.
This represents a shift from isolated, fragmented blockchains to a more cohesive network of data — something that more closely resembles a fiat economy.
The possibilities are truly exciting. FUSION would make smart contracts capable of dealing with off-chain data, which could significantly speed up operations and open new avenues of data management.
The Internet of Things is full of devices that can respond in real time to external inputs. Using smart contracts to authorize actions based on real-world, real-time events could be a big boost to the IoT, and with FUSION this kind of thing becomes possible.
Blockchain is making a big mark on the world. This is a crucial point in its history, where it could either be discarded by major financial players or adopted and expanded. If cross-blockchains can overcome the issues with scalability and efficiency that the technology currently faces, there’s no limit to what it could achieve.
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