How protocols are connected on the blockchain

With over a decade of investing in and building the rapidly evolving technology and blockchain industry, I understand that it is to keep moving forward with innovative solutions that can impact the industry and the world at large. I need to know. I have invested in many companies that have this characteristic.

While the blockchain industry is still in its infancy, many sub-niches and narratives have emerged. These technologies are evolving the blockchain landscape, and in this article, we'll delve into this topic, take a look at some of the areas that are making a difference in their respective areas, and how interconnected they are.

Privacy in Blockchain

This sector has shown consistent growth in terms of its importance to the entire industry. Data privacy and security are critical in today's blockchain world for a number of reasons. As more personal, financial and confidential information is stored and moved digitally, the risks associated with data breaches and cyber-attacks have increased. In the year By 2023, the cost of global data breaches will peak at $4.45 billion.

This rise of these attacks may be due to how the blockchain is structured. It is a ledger that contains a record of all transactions in the network. A key feature of blockchain technology is its immutability. Once a block (containing a unique code known as a hash) is entered into the chain, it cannot be changed or deleted. This provides data stored on the blockchain with tamper-proof security.

However, even though the blockchain seems to be an airtight layer, some bad actors have managed to exploit the system. In the fight to prevent these blockchain exploits and hacks, privacy-focused protocols are becoming increasingly popular. Consider installing a sophisticated alarm system for your digital assets, using smart triggers and independent naming systems to prevent unwanted intrusions.

Since we operate in an industry where data breaches can cost millions of projects, the importance of privacy-focused companies cannot be overstated. COIIN Network Protocol—Rainmaker's parent company—is a good example of a company playing in the privacy landscape.

Scalability in blockchain

The scale in the blockchain refers to the speed of the transaction. The ability to support high transaction volumes is a critical and major challenge for the blockchain and cryptocurrency industry. And this makes it a very important aspect of blockchain development in the future. Achieving an improved level of elasticity comes from reducing decentralization and maintaining a high level of security.

While keeping these in mind, it's important to note that scalability is critical to helping blockchain networks compete effectively with traditional platforms. The question here should be: How to provide effective blockchain scalability solutions that do not affect the basic principles of blockchain, which are decentralization and security?

I will provide you with layer-1 solutions. Also known as the “first layer”, it requires changes to the code base of the blockchain network. One reason is the so-called on-chain amplification solutions. They focus on improving the main features and characteristics of the blockchain network, such as increasing the block size limit or reducing the block verification time.

Ethereum has a transaction speed of around 15 transactions per second (TPS), and Bitcoin is around 7TPS. Both blockchains now have scalable solutions in sharding and light networking, respectively, but other solutions are emerging. A popular layer-1 platform is self-chaining. It is a modular int-centric access layer-1 blockchain and keyless wallet infrastructure service using MPC-TSS/AA for multi-chain Web3 access.

This sector has changed the way the world sees games forever. I say this because it is our reality now. Play-to-Earn Games is a collection of blockchain-powered games with Non-Fungible Tokens (NFTs) and tokens that allow players to earn in-game rewards.

These rewards have real-world value and players can earn them by progressing through various levels of the game. The in-game assets obtained can be weapons, tokens, lands and skins. Players can exchange or transfer these assets in marketplaces for real fiat currencies.

The gaming industry is huge and boasts an impressive number of people actively involved in it. By 2021, there were over 3 billion players in the industry. This number of people actively participating in games has helped the industry generate hundreds of billions of dollars in revenue.

That revenue is projected to reach $533 billion by 2027. The P2E market size is estimated at USD 32.9 billion in 2022 and is expected to grow to USD 88.6 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 17.93%. Some of the best P2E platforms in the industry include Axie Infinity, Creo Engine, The Sandbox, Splinterlands, Decentraland, etc.

Bridges: The Language of the Web3

Since the advent of blockchain technology, it has changed how we conduct transactions and store information. Blockchains have their own standards and regulations that govern them. In most cases, these are not compatible with other chains and lead to an ecosystem where blockchains cannot interact due to silo-style. The solution to this issue is block bridges. These are known as chain bridges as they allow the transfer of tokens and data from blockchain to blockchain.

The benefit of linking in blockchain is the ability to expand the functionality of the chain. This is an important tool for communication between different blockchains. A good example of this is the DeChat protocol, which promotes decentralized user interaction as an open and secure Web3 communication protocol.

Real estate on the blockchain

The largest asset class in the world, the real estate sector is another industry where blockchain technology is having a major impact. Most of the global economy's assets and transactions are made up of commercial real estate. According to the Boston Consulting Group (BCG), the total amount of tokenized illiquid assets, including real estate and natural resources, could reach $16.1 trillion by 2030.

This proves how big the real estate market is. While traditional real estate investment can be very difficult, with high entry barriers and limited accessibility, blockchain technology is slowly reducing it. Blockchain protocols are now used to process securities, documents and accounting and manage accountability.

With blockchain technology, you can own a fraction of a property, which significantly lowers the barrier to entry, thereby giving smaller investors a chance to enter the real estate market. Fractionet is currently a good example of a protocol for doing this.

The interconnectedness of all

While these different areas may seem very different, they are all part of the same living ecosystem that is blockchain. A privacy-focused protocol can be used to protect confidential data used in DeFi transactions—a technology that underpins the entire gaming economy.

Scalable blockchain facilitates the seamless communication that the bridge promotes. And consider a fractional ownership platform that offers investment opportunities fueled by DeFi liquidity. My point is that these projects are interconnected, and create a balanced ecosystem where innovation can thrive.