Ramani Ramachandran is its CEO and co-founder router protocol And duffin network,
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For the multi-chain ecosystem to flourish and crypto grow, cross-chain non-fungible tokens (nft) are mandatory.
In the face of recent events, there is much to be said for centralized, non-transparent entities. We’ve been hit by disaster after disaster over 2022 – The Fall of ftx to be freshest in our minds. People are growing distrustful of crypto and are looking for a solution.
Amidst the chaos, there is one area that is gaining massive traction: NFTs. And it’s not just crypto giants like binance Which are showing confidence, but also increasing the pace of real-life adoption. prefer luxury brands Guccisports icons like Ronaldo and even social platforms like reddit And Twitter Integrating NFTs at a rapid pace.
However, there’s a problem. NFTs are silenced by Singularity blockchain While we live in a multichain ecosystem. Thus, a case is made for cross-chain NFTs.
multichain ecosystem
There is an abundance of Layer 1 (L1) blockchains in crypto.
Some are general-purpose built, while others have a specific niche they’re trying to fill. And since they come with different tradeoffs between scalability, throughput, and security, there remains to be a clear winner to take it all.
So, it will not be a chain on top of the mountain. There will always be different projects that will choose their home based on their specific needs.
Because of these differences, users, manufacturers, and protocols web3 Many are scattered across the chains, forming disjointed networks.
Initially, this idea comes with the problem of segregation and fragmented liquidity. This obstacle has already been partially solved by cross-chain bridges that allow you to lock assets on one chain and withdraw them on another.
But, in a multi-chain future, the fragmentation of fungible tokens such as Ethereum (ETH) Or Avalanche (avax) Accessing other ecosystems won’t be the only thing limiting users.
Non-fungible tokens have many innovative use cases due to their verifiable and trustworthy properties, but there is one that is a natural progression for Web3 communities: digital identity.
digital identity
We all paint an external image of ourselves online.
And it’s for a good reason. As we move into a more digital world, we are slowly shifting our real life personalities online. Think about social media – we project an image of ourselves on various platforms like Twitter, Twitter. instagramEven more linkedin,
It is your digital identity – a representation of your real life personality in a digital environment.
We care about our digital identity because, in a covid It was the only way to interact with the world, other people.
Think back to the NFT craze of last year – people were willing to pay thousands of dollars for a PFP (Profile Picture), and still only have representatives of them. Our avatars are essentially our faces in the digital world.
This is why people like to buy skins in videos game And spend hundreds of hours pumping out content on your social sites – painting a picture of yourself for others to see.
Social media is so popular for the same reason. This allows you to create a unique persona of your own online.
However, in the current state of social media, we have a digital identity problem. Your digital identity can be erased at any time – all your content, associations and connections can be lost.
This is where NFTs come in handy: NFTs can be used to store and transfer all aspects of your digital identity.
You want to create your own identity – something that isn’t possible in the current state of social apps.
With the emergence of Web3, we are slowly turning the Internet into a place where lack of trust and user ownership have become the norm.
The need for cross-chain NFTs
If your digital identity is an NFT, it needs to be chain-agnostic.
Like your real life personality, you would love to take it with you wherever you go.
Were you limited to only one blockchain, this idea would not work. community, decentralized apps (dapps), and games will all be scattered across a wider ecosystem that includes multiple blockchains.
For a multi-chain ecosystem to be inclusive enough, interoperability is essential.
As an example, think about metaverse, a virtual world that everyone can reach. NFTs will constitute an essential link connecting the Web3 and the metaverse into one, allowing people to move, trade, and use avatars, objects, and even pieces of land.
Even disregarding digital identity, you can think of some NFTs as a store of value that you want to transfer to another chain, further reinforcing the need for cross-chain infrastructure. .
Interoperability infrastructure will provide the foundation for a thriving metaverse. Without it, we would end up with the similarly enclosed communities we know now.
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learn more:
, Coinbase Disables NFT Trading on Wallet Due to Apple’s App Store Policies – Here’s What Happened
, WATCH: Concordium Chairman on Digital Identity, Growth Plan, Crypto Trends and More
, JPMorgan Explores Digital Identity Wallet in Web3
, Where do we stand on self-sovereign identity?
, Soulbound Token – The Future of NFTs
, Soulbound Tokens vs. Self-Sovereign Identity: Web3’s Search for a Digital ID Solution
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