The Internet of Blockchains is a term describing the multi-chain future. Most crypto experts believe that multiple blockchains will co-exist. By connecting those blockchains, we will build the internet of blockchains.
What is the Internet of Blockchains?
The term “The Internet of Blockchains” was coined by Cosmos – a distributed network of blockchains. Cosmos makes it easy for anyone to create their own blockchains by providing a simple framework (Cosmos SDK).
These Blockchains are able to communicate with each other. This is possible with the Inter-Blockchain Communication Protocol (IBC). The IBC lets blockchains talk to each other inside the Cosmos ecosystem. It’s a way to standardize token bridges across multiple blockchains.
Cosmos is at the forefront of building the infrastructure of the Internet of Blockchains.
Why Not A Single Blockchain?
We call the belief system that only one single chain will prevail “chain maximalism.” The reasoning is the following: The strong network effect of one single chain will lead to most applications launching on this particular chain.
We see this kind of maximalism especially in the Bitcoin and Ethereum ecosystem.
However, if only one chain turns out to be the winner, we will miss out on innovation and decentralization. Having the option to choose between ledgers is part of the decentralization of our ecosystem.
In the future, we can choose between different blockchains with different parameters. That means each blockchain might fulfill a completely different purpose than the other ones.
For example, we might use one blockchain for data storage while another one might turn out to be suitable for settling financial transactions.
That’s the reason why the internet of blockchains makes sense to go after.