Race for Adoption: Succeeding Blockchains Must Offer Blazing-Fast Speeds (Opinion)
Speed matters greatly in the blockchain world. It's more than just a challenge – it's a key factor that determines whether this technology thrives or fades into obscurity. If Web3 fails to provide a smooth, efficient user experience similar to what people have grown accustomed to with Web2, it won't make a difference how decentralized or innovative it is.
Take a look at the state of development in the crypto realm. Approximately one-fifth of the activities focused on by developers are directed towards infrastructure development, with Layer 1 and Layer 2 projects accounting for over a third of that segment. These projects primarily aim to deliver rapid transaction speeds without overburdening users with high fees. It's clear that solving the scalability issue remains a crucial barrier for the blockchain industry.
However, don't just focus on the number of transactions per second. Achieving such high figures isn't the end goal; it's a means to create a better user experience. In areas where Web3 is truly gaining ground – like trading and gaming – swift settlement isn't a luxury, it's a necessity for competing with established players in Web2.
Taking Trade to DeFi
Demand for on-chain trading is soaring. According to the latest State of Crypto report from a16z, decentralized exchanges (DEXs) currently handle around ten percent of total spot crypto trading – a significant shift from four years ago, when centralized exchanges dominated the market entirely.
Meanwhile, the total value locked (TVL) in DeFi has exceeded $100 billion once more, and analysts anticipate continued growth, predicting a DeFi market growing at a staggering 45% compound annual growth rate (CAGR) through 2032. The market is gradually acknowledging the advantages of transparent, peer-to-peer trading over the opaque nature of centralized systems.
But Web3 isn't operating in a vacuum; the legacy finance sector isn't standing still. For on-chain trading platforms to lure users away from TradFi, they must offer speed, slick user experiences, and dependability on par with platforms such as Robinhood or Fidelity. While blockchain will never match TradFi in raw speed due to physics, latency, and decentralization, that's not where Web3 triumphs. Its edge lies in trustlessness, definitive settlement, and programmable finance—things that legacy systems can't offer.
The real competition isn't just about speed in execution; it's about injecting trust, efficiency, and adaptability into the financial stack. On-chain trading isn't about replacing TradFi—it's about fostering a financial system where finality is instant, markets are open, and speed serves trust, not intermediaries.
Gaming with Blockchain
While there have been fits and starts in the gaming industry, from Axie Infinity's early surge to NBA Top Shot's collectibles boom, long-term adoption remains elusive. This year, Ton has emerged as a hub for blockchain-based gaming with viral hits like Hamster Kombat, Notion, and Catizen. These trends suggest that blockchain can add fresh layers of ownership and economic incentives to gaming – but only if it can operate at speeds comparable to traditional game servers. If transaction delays or high fees introduce friction, blockchain games risk becoming just a novelty instead of a revolutionary shift in the gaming landscape.
Unlike decentralized finance and on-chain trading, which have benefited from institutional backing, blockchain gaming is still in its experimental phase. Developers face unique challenges: while traders may tolerate some transaction costs, gamers won't. If fees and latency interfere with gameplay, blockchain games can't compete with the polished experience of traditional games. That's why some studios, frustrated with existing infrastructure, have built their own chains – like Sky Mavis with Ronin or Dapper Labs with Flow.
This signals a clear need: Web3 gaming requires infrastructure tailored for high-speed, low-cost transactions at scale. Instead of forcing developers to grapple with these problems on their own, the industry must provide blockchains that are as invisible as they are powerful. After all, game creators should focus on constructing immersive experiences, not architecting new networks from scratch.
The Call for High-Speed Blockchains
If blockchain technology is to support high-demand use cases such as on-chain trading and gaming, it needs truly scalable, high-speed networks that deliver an experience akin to Web2 platforms. Solana's rise rapidly illustrates the need for fast, cheap block space, but its struggles with uptime highlight the challenges in delivering scalable speed without compromise. Even Layer 2 solutions like Ethereum's, while improving speed and reducing transaction costs, bring their own set of obstacles, such as interoperability and fragmentation.
The direction of travel is right, but the clock is ticking. Blockchain infrastructure must evolve at a rapid pace to meet Web3's promises before Web2 front-runners capitalize on them. Speed is essential, but it's not enough. The real goal isn't merely to match Web2's performance; it's to construct a trustless, open, and composable foundation that Web2 can't mimic.
Author bio
Tristan Dickinson is the Chief Marketing Officer at exSat Network, a docking layer for Bitcoin. With his extensive experience in the banking, financial services, Web3, and technology sectors, Tristan is a dynamic and forward-thinking marketing executive.
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- In the realm of Web3, the demand for on-chain trading is soaring, with decentralized exchanges (DEXs) currently handling around ten percent of total spot crypto trading, signifying a significant shift from four years ago.
- The total value locked (TVL) in DeFi has exceeded $100 billion once more, and analysts anticipate continued growth, predicting a DeFi market growing at a staggering 45% compound annual growth rate (CAGR) through 2032.
- The legacy finance sector isn't standing still, and on-chain trading platforms must offer speed, slick user experiences, and dependability on par with platforms such as Robinhood or Fidelity to lure users away from TradFi.
- In blockchain gaming, there have been trends suggesting that blockchain can add fresh layers of ownership and economic incentives to gaming, but these games risk becoming just a novelty if they don't operate at speeds comparable to traditional game servers.
- For true mass adoption of high-demand use cases like on-chain trading and gaming, the blockchain industry must provide infrastructure tailored for high-speed, low-cost transactions at scale, making blockchains as invisible as they are powerful.
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