The ability to customize the blockchain ecosystem via multi-chain opens up a plethora of possibilities when it comes to developing decentralized applications (DApps).
Multi-chain will help developers create DApps with expediency, adding to the scalability of the blockchain ecosystem. For the investment world, this opens up a wide array of opportunities for profitable exposure to the blockchain.
“Last year showed us that the future is multi-chain. Many DApps are going that route and those that aren’t are still looking for ways to tap into cross-chain liquidity,” said Ahmed Al-Balaghi, co-founder of developer platform Biconomy. “Currently, many cross-chain operability solutions cause fragmented workflows; there is an increasing need for infrastructure that delivers a single UI for users to interact with. This will allow DApps that need to move funds around in the backend to be able to do so with little to no impact on the user experience. Such workflows will become much more common, and end users won’t even need to know about blockchain technology to use it.”
Another hot topic of discussion these days involves Web3, which is essentially the world wide web that incorporates decentralization components inherent in the blockchain ecosystem.
“In Web2, payments and transfers happen within the app with minimal clicks. For Web3 to reach mass adoption, cross-chain transfers must be in-DApp as well. This year will be the year of frictionless Web3 experiences that finally make it mainstream,” added Al-Balaghi.
ETFs to Capture the Upside
One ETF to capitalize on the growing trend of the multi-chain is the Invesco Alerian Galaxy Crypto Economy ETF (SATO). Voyager Digital comprises one of SATO’s top holdings, which include various companies that operate within the crypto space.
SATO will aim to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index and provide exposure to companies participating in both the cryptocurrency and blockchain space, including businesses such as cryptocurrency miners, cryptocurrency infrastructure technology developers, and cryptocurrency buyers.
Another option is the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). Per its fund description, BLKC will aim to track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index.
The index is comprised of stocks of companies that are materially engaged in the development of blockchain technology, cryptocurrency mining, cryptocurrency buying, or enabling technologies, exchange traded products (ETPs), and private investment trusts traded over-the-counter that are linked to cryptocurrencies. The fund comes with a 0.60% expense ratio.