How Blockchain Fragmentation Can Limit the Compatibility and Scalability of Decentralised Technology

As blockchains obtain steady fine-tuning and enhancements, builders are figuring out essential points which are proscribing the advances in interoperability and scalability of the know-how. One such situation is named ‘blockchain fragmentation’. As the time period suggests, it refers to a scenario the place the ecosystem of a blockchain is split into a number of smaller on-chain networks, every facilitating a distinct activity effectively. The phenomenon of fragmentation is understood to complicate blockchain adoption. It usually leads builders to decide on between a number of blockchain options that don’t functionally align with one another.

Gadgets 360 spoke to Rohas Nagpal, chief blockchain architect at Hybrid Finance Blockchain (HYFI), a layer-1 blockchain, to grasp the method of blockchain fragmentation and the way it impacts the ecosystem.

“Blockchain fragmentation occurs when totally different blockchains can’t work together easily. Each chain works like an island, with its personal guidelines, tokens, and programs. This lack of connection limits the potential of blockchain know-how,” Nagpal stated.

When a blockchain fragments, it basically obstructs the community from supporting a unified system for worth change to its full potential.

The constantly growing variety of Layer-2 blockchain networks has made fragmentation a extra frequent situation with blockchain networks in recent times, Charles Wayn had written in a published opinion again in October 2024. Wayn is the co-founder of a Web3 onchain distribution platform named Galxe.

According to Nagpal, fixing the issue of blockchain fragmentation will make it extra environment friendly to assist a number of usecases whereas additionally bettering the change of information and worth between totally different blockchain ecosystems.

There are measures that blockchain builders can take to start out decreasing the dangers of fragmenting blockchains, Nagpal stated, including that builders ought to “construct instruments like blockchain bridges to attach totally different blockchains.”

He additionally recommends that builders arrange frequent guidelines for APIs and blockchain-native tokens to work nicely collectively in synchronisation. Creators of crypto wallets may carry out storage options to handle property from a number of blockchains on one platform.