The co-founder of Akash Network at the Cosmos blockchain believes that the problem of the crypto market is not volatility, but the scalability that sidechains can provide.
Greg Gopman, Chief Marketing Officer and Head of Business Development at ANKR, believes that the unsolved problem of the cryptocurrency industry is not really price volatility, but scalability.
“I say this after a trillion dollar market crash followed by the current crypto winter. Again and again, we see promising projects facing scalability issues,” says Golman.
According to him, this even applies to first-level blockchains built on a proof-of-stake (PoS) model.
“Whether it’s a delegated proof of stake, rented proof of stake, regular proof of stake, masternode proof of stake, or whatever. Previously, with those transaction volumes, we thought that PoS was the answer, now we know that more performance is needed, ”said the head of marketing at ANKR.
In Gopman’s terms, a scalability problem is when a project is successful up to a certain point and then fails to sustain further growth. This is due either to a lack of infrastructure or a weak verification mechanism. In his opinion, some projects are initially better suited to sustainable growth:
“Transaction fees on Ethereum have been exorbitant for a long time. Network upgrades and additional layers such as Plasma proved to be ineffective despite the hype. Bitcoin has also experienced periods of severe network congestion and was simply not suitable for global adoption due to its inherent proof-of-work (PoW) algorithm.”
In GameFI, the scalability issues are most obvious and they are not dependent on the blockchain. Gopman believes Ethereum-based gaming products such as CryptoKitties, Axie Infinity, and DeFi Kingdoms on Harmony have suffered more noticeably during the crisis. According to him, today sidechains may be the best solution to the scalability problem. All leading blockchains in the industry are exploring the possibility of integrating sidechains, the expert assures.
The chairman of the Bank of France, François Villeroy, on the contrary, believes that the main problem with cryptocurrencies is their volatility, since they “have no person in charge of value.” According to the official, this problem is likely to accelerate the development of the state digital currency.
Source: Bits
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