Multichain is here and it's the Future
The mass adoption of Web 3 and DeFi 2.0 is imminent, with an influx of over 1 billion users expected to be onboarded within the coming years, the industry will start seeing a shift towards a Multichain strategy as they begin to bootstrap for the mass onboarding of future users. With the mass onboarding of users comes an increase in value to the blockchain industry as a whole, as the industry’s market size is expected to grow from around $7bn in 2021 to more than $160bn in 2027 (23x in 6 years). However, we are already seeing a congestion in popular blockchains such as Ethereum, where the amount of users using the decentralized technology has exceeded the functionality of the technology itself. This is where the value of a Multichain strategy lies, as it allows for the decongestion of individual blockchains, spreading value across communities and lubricating the entire blockchain infrastructure across different chains. For users Multichain eliminates costly and complex transactions, ensuring a positive end-user experience. Domani is committed to a multichain present and future, with the launch on Avalanche and the future launches on Algorand and Solana. We want to build a better end-user experience as well as capitalize on the growing market share of alternative blockchains, in the search of expanding our reach and communities we operate in.
Currently, Ethereum native protocols are struggling with costly gas fees, complicated onboarding and technical obstacles for developers, which have hindered the scalability of the L1 Ethereum blockchain. Keeping in mind the expected mass influx of users, an issue with scalability could be detrimental to a protocol to the extent that many Web 3.0 protocols are naturally expanding into alternative blockchain projects looking to solve the issues raised by Ethereum. These alternative blockchains (e.g. Solana, Algorand, Avalanche 👀) are NOT an Ethereum killer, they simply provide a multichain approach in building the best possible Web 3 experience for end users. Long story short, successful alternative blockchain solutions is good news for all within Web 3.
Quoting the words of the Messari’s Crypto Thesis for 2022, “the shift to a multichain future is here, and it’s created a massive opportunity for existing DeFi brands to extend to new ecosystems”. The opportunities for Multichain expansion on Domani are immense. With our Multichain strategy, Domani will enable the democratization of Asset Management for all DeFi communities, across blockchains. Multichain enables a seamless, trustless, and permissionless experience for our end users, which is why Domani has selected Avalanche as the beginning of our Multichain journey. We also look forward to launching on Solana and Algorand to continue improving Web 3 and democratizing Asset Management for all.
Within each blockchain that Domani is expanding into, there lies a set of unique key factors that drove the decision making process:
🔺 Avalanche
Low cost, fast transactions are what differentiates Avalanche from the rest, and what drove Domani to adopting the blockchain. Aside from the technical qualities of Avalanche, the community on Avax is lacking a comprehensive Asset Management protocol, enabling Domani to fill that void, and become the established Asset Management protocol on Avalanche.
☀️ Solana
Entering the Solana Ignition Hackathon in partnership with Knobs Blockchain, gave Domani an opportunity to test out our capabilities on the blockchain, coming out of it with a fully functional prototype on Solana.Fast, low cost transactions as well as an ecosystem with the developers at the forefront, are the main reasons why Domani will be launching on Solana, with the dApp expected to be fully operational in early 2022.
♻️ Algorand
The Algorand Foundation grant allowed Domani to start building on Algorand, and with it came the creation of DEXMF. Building on Algorand allows DEXMF to service institutional clients through Algorand’s scalable, fast and institutional ready smart contract toolkit. Algorand’s development of a co-chain functionality is one of the most interesting features as its completion will mean that permissioned networks are allowed to run along the public mainnet, resolving an issue that has kept institutions away from #DeFi, and giving Domani access to a relatively untapped market.
Through the expansion of our Multichain strategy, we look forward to onboarding Web 3 and DeFi 2.0 newcomers, as Domani continues to build for a better tomorrow.