Custom Micro Blockchains Are Becoming Mainstream

There was once a time where all you had where a few blockchains. Primarily Bitcoin, Litecoin, Ethereum and some hard forked tokens like Ethereum Classic, Bitcoin Cash etc. But it wasn't until around 2017 when the first though of a layer two token came to be and was introduced from the Ethereum network.

From a era of single blockchains where you had to pick and choose with no connection to each other than swapping one asset for another via an exchange quickly became multiple tokens, swaps, and other applications. It also ushered in the NFT age but now a new era seems to be taking shape.

One of the biggest issues many applications have with using other blockchains is the sheer cost that happens with transaction fees, rescources etc. Those seem to now be getting replaced with internal systems so they don't have to touch the external.

These new mini blockchains work in the same way as a traditional blockchain but they are owned by the company or might be owned by what I like to refer to as micro nodes.

We see this already in place on things like Theta network where everyone on there acts as a CDN or runs a node for the live streams rewarding users in a native token called TFuel.

We saw a big advancement in this in the gaming field with Gala games and their native token.

These changes allow the game to run transactions for themselves at a much lower price or even free. Allowing collection of fees to support the company and investors such as node operators.

When you think about it it's actully a very smart system with a lot of benefits in terms of brining value to that ecosystem and less to the massive corporate blockchain such as Ethereum.

More and more of these micro blockchains are coming to be. I see it taking shape right here on the hive blockchain in the form of 3speak and their native token.

Something also makes me speculate that soon Splinterlands will have their own. With the 50+ new tokens about to hit Splinterlands seems like those tokens will still be able to be moved on to the hive blockchain but at a high cost fee. Instead swaps, transactions and other fees will all take place on their internal blockchain allowing for more rewards and resources to go to those who are active investors inside of the game instead of Hive as a whole.

Micro Blockchains Future

Now this is particularly something important to take note of. With more micro blockchains there's the possibility of risks however more management means if something happens they might be able to fix it more easily compared to say it was an issue on the Ethereum blockchain instead of their in house blockchain.

It's a trade off of trust on a massive network or trust on a small company or group of people.

In most cases this would most likely be fine and the external pings and transactions that can still take place outside of their internal blockchain is a good thing. If there were ever to be removed however is when I would get worried.

It even seems like Coinbase is now pushing in this direction with their internal blockchain called COIN which just released. This will help on reducing transaction cost and swaps between tokens instead of constantly hitting the main network to do so.

What comes into question next is if too many of these mirco blockchains start removing the fees and costs to the core blockchains like Ethereum will we see their values decline as usage and need for them declines?

Instead of one large robust blockchain these micro blockchains would take over everything thus creating smaller pockets of wealth.

What are you thoughts on these micro blockchain changes we are seeing happening today?

Posted Using LeoFinance Alpha