Fast-Paced Adoption Battle: Just Super-Speedy Blockchains Will Clinch the Victory (Opinion)
Swiftness isn't just a dilemma for blockchain - it's the difference between acceptance and extinction. If Web3 can't keep pace with the smooth experiences that consumers crave, it won't matter how distributed or innovatively it functions.
A glance at the current development landscape demonstrates this: according to a16z's Builder Energy Dashboard, infrastructure development accounts for around one-fifth of crypto work, with Layer 1 and Layer 2 projects making up over a third of that segment. Since most of these projects are focused on delivering blazing fast transactions without crippling fees, it's evident that scalability and processing times remain a critical limitation for the field.
Yet, we shouldn't view blockchain scalability as the lone measuring stick for speed. Aiming for the highest transactions per second isn't an objective in itself, but a stepping stone towards a better user experience. In the realms where Web3 is making significant strides - namely trading and gaming - lightning fast settlements aren't luxuries; they're necessities if we want to compete against Web2 stalwarts.
Trading Evolution: From CEXs to DEXs
The appetite for on-chain trading is escalating. According to a16z's annual State of Crypto report, decentralized exchanges (DEXs) now handle 10% of total spot crypto trading, a remarkable departure from four years ago when centralized exchanges (CEXs) ruled the market with a 100% share.
Meanwhile, the total value locked (TVL) in DeFi has breached the $100 billion threshold once more since 2021, and analysts predict rapid growth ahead, with DeFi anticipated to soar at a 45% compound annual growth rate (CAGR) through 2032. The market is slowly catching on to the benefits of transparent, peer-to-peer trading, contrasted with the opaque black boxes of centralized systems.
However, Web3 is not toying with a vacuum - legacy finance isn't standing still. If on-chain trading platforms intend to lure users away from TradFi, they need to deliver swiftness, intuitive UX, and dependability on par with platforms like Robinhood or Fidelity. The truth is that blockchain will never match TradFi's centralized servers for raw speed owing to latency, physics, and decentralization constraints. Still, speed isn't Web3's battlefield; trustlessness, finality, and programmable finance are.
The competition isn't so much about a nanosecond advantage; it's about how much trust, efficiency, and adaptability Web3 can infuse into the financial stack. On-chain trading isn't about rendering TradFi obsolete; rather, it's about creating a financial system where finality is instant, markets remain open, and speed fosters trust, not intermediaries.
The Gamified Future
Although gaming has flirted with the mainstream spotlight, from Axie Infinity's initial surge to NBA Top Shot's collectibles frenzy, long-term adoption continues to evade us. This year, Ton has emerged as a haven for blockchain gaming, with fads like Hamster Kombat, Notion, and Catizen capturing widespread attention. These patterns hint at the potential for blockchain to bolster gaming with additional ownership and economic incentives - but popularity isn't the same as sustainability.
The real opportunity lies in lightning-fast asset settlement, true player ownership, and open economies, but only if blockchain tech moves at speeds that are indistinguishable from traditional game servers. If lag or high fees hinder gameplay, blockchain games risk being mere novelties rather than true revolutions - temporary fads instead of industry-shifting movements.
differential from DeFi and on-chain trading, which have witnessed institutional backing, blockchain gaming is still in its infancy. Developers face a unique set of challenges: while traders may be willing to tolerate some transaction costs, gamers won't. If fees or latency disrupt gameplay, blockchain titles simply cannot compete with the seamless, flawless experience that traditional games offer. That's why some studios, frustrated with current infrastructure, have constructed their own chains - like Sky Mavis with Ronin or Dapper Labs with Flow.
This points to an unmet demand: Web3 gaming requires infrastructure designed for ultra-fast, cost-effective transactions at scale. Rather than burdening developers with tackling these issues, the industry must provide blockchains that are as invisible as they are powerful. However, game creators shouldn't be tasked with constructing new networks; their focus should be on building immersive worlds, not on network architecture.
The Drive for Lightning-Fast Blockchains
For blockchain to fully deliver on its promise for high-demand applications such as on-chain trading and gaming, the industry needs genuinely scalable, super-fast networks that can rival the smooth experience consumers have come to expect from Web2. Solana's meteoric ascent demonstrates the demand for quick, affordable block space, but its troubles with uptime highlight the challenge of offering scalable speed without compromise. Even Ethereum's Layer 2 solutions, though improving speed and cost-efficiency, introduce their own set of hurdles, chief among them interoperability and fragmentation.
Time marches on, and blockchain infrastructure needs to transform at a comparable pace to deliver on Web3's potential before Web2 giants seize its best ideas. After all, it's not just about speed - it's about constructing a trustless, open, and composable infrastructure that Web2 can't replicate.
Author Bio
Tristan Dickinson is the Chief Marketing Officer at exSat Network, a docking layer for Bitcoin. A dynamic business visionary, Tristan boasts extensive experience from the banking, financial services, Web3, and technology sectors.
- The current development landscape illustrates that scalability and processing times remain a critical limitation for the field, with around one-fifth of crypto work dedicated to infrastructure development, and Layer 1 and Layer 2 projects making up over a third of that segment.
- In the realms where Web3 is making significant strides - namely trading and gaming - lightning fast settlements aren't luxuries; they're necessities if we want to compete against Web2 stalwarts.
- If on-chain trading platforms intend to lure users away from TradFi, they need to deliver swiftness, intuitive UX, and dependability on par with platforms like Robinhood or Fidelity.
- The appetite for on-chain trading is escalating, with decentralized exchanges (DEXs) now handling 10% of total spot crypto trading.
- developers face a unique set of challenges: while traders may be willing to tolerate some transaction costs, gamers won't. If fees or latency disrupt gameplay, blockchain titles simply cannot compete with the seamless, flawless experience that traditional games offer.
){kind=link}