Alex is a writer, speaker, investor and advisor focused on the impact of emerging technologies such as blockchain and cryptocurrencies. He is the Managing Director of Ninepoint Digital Assets Group, a provider of blockchain technology and cryptocurrency investment management services.
“I think 2022 is the year of the multichain. 2021 saw the rise of new Layer One protocols like Solana and Avalanche that promised to improve Ethereum with faster speeds and lower fees. But these benefits can turn out to be fleeting. As they become more popular, they can suffer the same fate as Ethereum. Keep in mind that Ethereum fees were also cheap until the network found a commodity market suitable for the boom in cash mining and other DeFi applications.
With a tsunami of new users entering the ecosystem, it has become a victim of its own success. The fees skyrocketed, turning Ethereum into a ‘chain of whales’ meaning only the wealthy could afford the fees. The same could happen to other layers. It’s OK. I think the scarcest resource in the world over the next few years will be bulk space. All of these layers are likely to fill up, which means we need better ways to interconnect different protocols.
Most new crypto users will only interact at the application layer level, not knowing or caring about the base chain they are running on. It means making interoperability a reality. A few groups are working on the multichannel, including Cosmos, which supports hundreds of crypto assets worth tens of billions of dollars. 2022 is the year of multi-chain maximalism, and Cosmos is leading the way.