The past 24 hours have been thrilling for the crypto market. Although cryptocurrency was pushed into the spotlight towards the end of last year, there remained questions over whether there was genuinely going to be mainstream adoption of cryptocurrency, or whether moral panic over rug pulls and scams would lead to its discredit.
Recent news is hinting that the crypto market may be heading towards mainstream adoption. It was announced that luxury fashion brand Gucci will begin accepting cryptocurrency payments in select US stores at the end of this month, with the intention of expanding the pilot to all of its directly operated stores in North America this summer. The move represents a significant endorsement of the currency by a leading luxury brand.
Then, news of French stock market regulator, AMF, registering Binance as an official digital asset service provider hit, meaning that the company will be able to provide trading and custody services for cryptocurrencies. This marks yet another progressive step for fintech, alongside hopes that other countries will follow.
There’s still room for improvement in crypto
Crypto has been hailed by advocates as something of a solution to the many issues facing traditional and centralised finance. These issues include high fees to intermediaries, slow international transfer times, low interest rates averaging well below 1%, and lengthy verification processes.
While it’s undeniable that using cryptocurrencies could eliminate these weaknesses, blockchain technology is still in its infancy. As more people have been buying crypto over the past year, several issues have become apparent. High gas fees, which have become increasingly associated with Ethereum (ETH), can be off putting for many potential investors.
Secondly, while you might assume that paying high gas fees guarantees good service, this is almost never the case for crypto. You can still wait up to 5 hours for an Ethereum (ETH) transfer to reach its destination, especially if the blockchain is congested.
When the number of transactions queued up exceeds the blockchain’s capacity, congestion occurs. In other words, the block size limit for confirmation has been exceeded. This can cause significant disruption to a network, especially if trading activity is involved. Only a few days ago, both the Ethereum (ETH) and Solana (SOL) blockchains were overwhelmed by sales for virtual land in ApeCoin’s (APE) upcoming metaverse. Solana (SOL) went offline, while gas fees for Ethereum (ETH) skyrocketed.
Interoperability is the answer
This is where interoperability comes in. Interoperability refers to the ability of different blockchain networks to share and leverage data, as well as move specific types of digital assets between the networks’ blockchains. This interconnection could pave the way for the development of innovative new products and services that combine the advantages of multiple blockchain networks.
There is one crypto taking initiative to solve the lack of interoperability across blockchains. Calyx Token (CLX), an emerging liquidity protocol currently in presale, is planning to operate across multiple blockchains, starting with Ethereum (ETH). By doing this, they grant users instant trade (executing exchanges in a single transaction immediately after requested).
Despite its 300,000 TPS coupled with its 15 second finality, Calyx (CLX) isn’t exclusive to one blockchain, meaning it provides users with minimal transaction fees by sourcing liquidity from multiple protocols.
Despite the fact that the crypto market is taking large strides towards mainstream society, it’s the underlying blockchain technology that will determine its success. Now is the time to improve the issue of interoperability, which is best done by driving up demand for cryptocurrencies such as Calyx (CLX) that are attempting to solve it.
Moreover, interoperability on the blockchain works towards eliminating intermediaries or third parties, which are synonymous with centralised systems. The ability of different decentralised networks to communicate with each other without the use of intermediaries should help to create fully decentralised systems, and transform finance as we know it.
Enter the Calyx Token (CLX) presale now: