Rapid Adoption Demands Swift Blockchain Technologies (Opinion)

A Blazing Fast Future for Blockchain: Speeding Up Web3

Speed is paramount in the blockchain world - it's the difference between embracing the future and becoming obsolete. With Web3, the battle isn't just about speed, but creating a trustless, open, and composable foundation that can beat Web2 at its own game.

The current state of blockchain infrastructure reveals a major focus on high transaction speeds and low fees. Infrastructure development, according to a16z's Builder Energy Dashboard, occupies around one-fifth of all crypto-related activity, with Layer 1 and Layer 2 projects accounting for over a third of that chunk. These projects are primarily geared towards delivering rapid transactions with minimal costs, a crucial step in overcoming scalability constraints.

However, speed for speed's sake isn't the ultimate goal. The real objective is to achieve a better user experience, particularly in areas like trading and gaming where swift settlements are not a luxury, but a necessity for competing with Web2 incumbents.

Take decentralized exchanges (DEXs), for example. According to a16z's annual State of Crypto report, they now account for 10% of total spot crypto trading, a dramatic shift from just four years ago when centralized exchanges (CEXs) dominated the market. Meanwhile, total value locked (TVL) in DeFi has exceeded $100 billion once again, and analysts predict continued growth, with DeFi projected to grow at a 45% CAGR through 2032. The market is increasingly recognizing the benefits of transparent, peer-to-peer trading over centralized systems.

In the world of gaming, viral hits like Hamster Kombat, Notion, and Catizen on Ton suggest that blockchain can add new depth and economic incentives to gaming, but longevity remains elusive. To secure long-term adoption, high-speed asset settlement, true player ownership, and permissionless economies are vital, but only if blockchain tech can operate at speeds indistinguishable from traditional game servers. If delays or high fees create friction, Web3 gaming risks becoming a novelty rather than a revolution.

Some studios like Sky Mavis with Ronin or Dapper Labs with Flow have taken matters into their own hands, building their own chains to meet the unique demands of high-speed, low-cost transactions at scale. This underscores the unmet need: Web3 gaming requires infrastructure tailored to its needs, and the industry must deliver blockchains that are as invisible as they are powerful.

Infrastructure is the lifeblood of blockchain, and it's evolving rapidly. Solutions like Cosmos, a Layer-0 blockchain framework emphasizing interoperability, and BEVM, a Bitcoin-based, EVM-compatible layer 2 solution with a developer-friendly environment, are setting the pace for the future. These technologies, along with growing institutional uptake and compliance-focused architectures, represent the leading edge in blockchain infrastructure for high-demand use cases such as on-chain trading and gaming.

Trustlessness, finality, and programmable finance - these are the strengths of Web3 that legacy systems can't match. It's not about speed alone, but using it to build a financial system where finality is instant, markets are open, and speed serves trust, not intermediaries.

Author Bio

Tristan Dickinson is the Chief Marketing Officer at exSat Network, a docking layer for Bitcoin. A dynamic and visionary marketing executive, Tristan brings a wealth of experience from the banking, financial, Web3, and technology sectors.

Extra Reading:

Cosmos: A Modular, Interoperable Layer-0 Blockchain Framework [1]
Blockchain Market Growth and Shift Towards foundational tech Enabling Real-World Adoption [2][5]
Enterprise-Grade Blockchain Infrastructure and Hybrid Solutions [4]
BEVM: A Decentralized, Secure, and Gas-Efficient Layer 2 Solution for Bitcoin [3]
Regulatory Clarity and Institutional Interest Drive Adoption of Scalable, Integrated Blockchain Systems [5]
Tristan Dickinson, the Chief Marketing Officer at exSat Network, a docking layer for Bitcoin, highlights the swift evolution of blockchain infrastructure, emphasizing the importance of speed to overcome scalability issues and compete with Web2.
The ongoing infrastructure development in the blockchain world is focusing on high transaction speeds and low fees, with Layer 1 and Layer 2 projects accounting for over a third of the activity.
Decentralized exchanges (DEXs) now account for 10% of total spot crypto trading, signifying a significant shift from the dominance of centralized exchanges, demonstrating the growing appeal of transparent, peer-to-peer trading over centralized systems.
In the gaming sector, notable projects like Hamster Kombat, Notion, and Catizen on Ton indicate the potential of blockchain to add depth and economic incentives to gaming. However, long-term adoption requires high-speed asset settlement, true player ownership, and permissionless economies that operate at speeds comparable to traditional game servers to avoid creating friction.