With the reduction in Ethereum transaction fees, a majority of applications can now cost-effectively run on Ethereum; still, the recent rapid uptick in gas fees has led many developers, projects, and users to look elsewhere. This has led to the rapid growth and expansion of networks such as Binance Smart Chain (BSC), Avalanche, Huobi Eco Chain, and many more, with everyone looking for the optimal way to host blockchain-based applications.
With the continued growth of the industry and the segmentation applications and platforms are currently facing, it seems inevitable that interoperability is the future of blockchain applications. With network interoperability comes broader aggregation, offering the ability to bring all of the relevant aspects of each relevant blockchain feature to one place, regardless of the native chain of the application or the user. We have already seen aggregation from singular chains in specific applications, but this is still limited.
The Benefits of Aggregation
With aggregation, users will be able to analyze the entirety of available options all in one place. For example, through staking or interest-bearing cryptocurrency accounts. There are many different avenues users can take for staking or interest-producing accounts, even within a singular ecosystem or token. Instead of forcing the user to go from platform to platform, shopping around for the best ratio of return, all of the available options can be aggregated into one platform for easy comparison.
Aggregation can go even further than this however, such as the case with decentralized oracles. Blockchain-based oracles are meant to provide real-world and off-chain data to blockchain networks, and by aggregating the data of all of them instead of relying on a single oracle, there is a greater likelihood of accuracy. Furthermore, this aggregation will lead to easier consensus, as it will be simpler to determine what data is correct based on the aggregated inputs from all available parties.
How Does Aggregation Affect the NFT Market?
Like many different cryptocurrency-based applications and assets, NFTs can also drastically benefit from aggregation. More NFT creations and infrastructural projects are coming to market every day, but many times, they do not have the ability to leave their native platform. With the open-source nature of cryptocurrencies, aggregation can provide a solution for assets and applications on any open-source chain, bypassing the developers once their creation is live on the open market. This creates a more accessible marketplace for all users, unlocking the complete value of individual NFTS and the NFT marketplace.
With the continued push to cross-chain interoperability, aggregation has a lot of potential to broaden the impact of individual sectors by making them more open and accessible. In the case of NFTs, the benefits of aggregation are evident, bringing together a fragmented asset class all together in a single place.