• The crypto industry is getting fragmented into many protocols and chains.

The crypto industry has seen a drastic change from plinth to paramount. The adoption of crypto is widely increasing and many technologies and platforms are coming up with new innovations. The industry is getting fragmented and somewhat diversified into protocols and chains. So, the main question arises: does the crypto industry really need so many protocols and chains to operate? 

We should know that diversification is necessary but too much of it can create complexities. So in this article, we will try to find out what crypto fragmentation is and how it will affect the crypto world. So, without any further delay, let’s start to talk about the main issue.

What is Crypto Fragmentation?

To first learn about what crypto fragmentation is, we should know about protocols and chains so as to get a better understanding of the whole process. Protocols are chains; both are separate terms and have different meanings.  

Protocols are the rules governing the networks to operate. They decide a set of confined rules for the blockchains systems that should be followed in the process of validation of the nodes. There are different types of protocols such as Etheruem, Hyperledger, Quorum, and many more. 

Chains, on the other hand, are blockchains which facilitate the systems of validation of nodes and help in storing data. Blocks get combined and form a system of chains which is a continuous and ongoing process. They are basically a foundation of the whole operating system of blockchains. Chains are subdivided into cross chains, sidechains , multi-chains, and many more. 

So, as we know what protocols and chains are, let’s talk about crypto fragmentation. 

Crypto fragmentation is nothing but the division of crypto systems into protocols and chains. It divides the whole network of blockchains into different protocols and chains. As the crypto fragmentation increases, the consequences can be seen positive and negative. 

Positive Consequences of Crypto Fragmentation

  • Crypto fragmentation will increase the efficiency of the whole blockchain system. 
  • It will provide a variety of choices to the users to choose and use the blockchain systems. 
  • It diversifies the whole system of crypto and makes it easier to use. 

Negative Consequences of Crypto Fragmentation

  • First, it will create a burden on the system of blockchains as more protocols and chains means more congestion.
  • Second, a single point of failure can occur in this system.
  • Third, it creates complexities and confusion in the mind of the users. 

As we have seen the positive and negative consequences of crypto fragmentation, now we can decide to make a subjective conclusion about the whole topic.


To end with, crypto fragmentation can be seen as necessary for the crypto industry to have many protocols and chains, as this will provide the whole system to work efficiently and quickly. However, too much diversification is not needed. 

However, the emerging industries like crypto should focus more on the procedure rather than the diversification or division. To conclude the whole blog, I want to make a note that too much of anything can have negative implications. 

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