As a seasoned researcher and co-founder of Galxe, I have witnessed the dynamic evolution of the blockchain ecosystem from close quarters. The recent surge in L2 solutions, while promising, has presented us with a complex web of challenges that threaten to derail our journey towards mass adoption.
When Vitalik Buterin, a co-founder of Ethereum (ETH), declared that The Merge had been accomplished in September 2022, it was all about enhancing performance for blockchain development. Lately, scalability has surpassed efficiency as the top priority among the five major hurdles currently encountered in web3.
Leading first-tier blockchains are being replaced by an increasing number of second-level solutions, which claim to take the blockchain world to greater heights. Unlike the unified approach that led to The Merge, this current phase of blockchain evolution – often referred to as “The Surge” within Ethereum circles – has brought about several challenges. A novel scalability framework, primarily driven by a rapidly expanding universe of L2s (Layer-2 solutions), has resulted in a dispersed blockchain landscape marked by numerous chains, each with its unique set of rules, tokens, and transaction costs.
For some, participating in capitalism means believing that competition breeds success. But when it comes to blockchains, more isn’t necessarily better. Just as the tech shortcomings of the early internet made it challenging for newcomers to navigate websites, the complexity of managing multiple blockchain layers presents significant challenges for users.
If we are to steward web3 to mass adoption, the time has come to ask: how many layers are too many?
Challenges of a fragmented blockchain ecosystem
With each additional layer we add to our metaphorical blockchain cake, both users and developers encounter growing difficulties in the shape of reduced usability and stifled creativity. While the untamed territory of L2s generally has a positive impact, as more complications accumulate on the user interface, there’s a risk that our blockchain cake could become almost impassable to navigate through.
Getting started with web3 can be quite challenging, and adding the complexity of managing multiple digital wallets, cryptocurrencies, and fee structures across different blockchain networks can make simple tasks more difficult or even laborious for users. For many people, the fragmented nature of this ecosystem significantly raises the hurdle for newcomers.
Developers often encounter similar challenges. Navigating multiple layers can lead to longer build times and higher development expenses. Moreover, the growing number of blockchain networks not being able to work seamlessly together makes project complexity even greater, particularly for teams aiming to create cross-chain apps. In today’s L2 (Layer 2) space, progress can be stalled when developers find themselves lost in a complex and confusing environment.
Layer 2s: A potential that’s lacking
Indeed, the layered structure for scalability has its advantages. It’s worth noting that the fragmented network of L2 (Layer 2) constellations prevalent in the blockchain industry today has a certain logic and order to it.
In essence, using L2 solutions provides significant advantages such as improved scalability and speed. Moving transactions from L1 to L2 results in a higher capacity for the original system to handle transactions. This transition can result in faster, more affordable, and secure operations. Additionally, it provides an additional shield of protection for sensitive transactions.
As a researcher, I’ve noticed that while these benefits are compelling, they might not always overshadow the drawbacks indefinitely. The intricate network created by fragmentation can sometimes become overpowering, particularly as the realm of L2 solutions broadens and a definitive solution remains hard to find.
A unified approach
As a researcher, I’m thrilled to share an exciting approach to addressing the hurdles in the L2 race—chain abstraction. This innovative solution simplifies the complexities and intricacies of blockchain technology that often impede usability for many users like myself. By abstracting away these complexities, chain abstraction allows us to retain the broader advantages of decentralized technologies while making it more accessible for average consumers, thus lowering the entry barrier.
A widely-backed idea among mass adoption supporters is ‘chain abstraction’, which enables us to establish a single, unified interface that interacts with multiple blockchains. This method simplifies user experiences by enabling them to handle their assets and execute transactions without delving into the complexities of each individual layer beneath.
Absolutely, individual chain abstractions don’t operate independently, and that’s where multichain infrastructure becomes crucial. As a practical implementation of chain abstraction, multichain infrastructure extends this idea by enabling the development of a unified, interconnected ecosystem that encourages smooth interactions across multiple blockchains.
By powering fragmentation solutions such as seamless cross-chain transactions and secure and efficient verifications while incentivizing developer flexibility, omnichain infrastructure makes a simplified user-centric design possible and blockchain interactions more intuitive and efficient.
Multichain today, omnichain tomorrow
So, where do we go from here?
The increase in second-language (L2) systems has brought web3 into a time of division, but complexity continues to be prevalent throughout the blockchain. This intricacy can be found at multiple levels, not just within or beyond the L1 and L2 frameworks. Over time, this intricacy only seems to intensify as traditional organizations and consumer demands drive continuous innovation, the creation of new platforms, and the emergence of novel requirements.
“This brings us back to our starting point – the question at hand. Many novice users might find multiple integrated layers excessively complex.
If scalability indeed plays a significant role as developers often emphasize (and it does), we should not underestimate the potential of omnichain infrastructure in facilitating our quest for widespread acceptance. By linking products and blockchains, merging data to provide smooth interactions, and making web3’s power more accessible, we can empower even the most ambitious projects.
Charles Wayne is a pioneer in the web3 sector, being the co-founder of Galaex, the largest onchain distribution platform in the web3 realm. Galaex distinguishes itself by connecting millions of users across multiple blockchains, thereby boosting the development and progression of key players within the industry. Prior to founding Galaex, Charles was instrumental in making DLive the world’s leading blockchain-based live streaming platform, which was eventually acquired by BitTorrent. In his role as VP of Interactive Entertainment at BitTorrent, he continued to make significant contributions. Galaex’s initiatives, backed by industry heavyweights such as Multicoin Capital, Dragonfly Capital, and Coinbase Ventures, demonstrate the company’s commitment to introducing web3 skeptics to its practical uses, fostering a sense of community, and uncovering new economic opportunities for both users and partners. Charles earned his Bachelor of Science from the University of California, Berkeley.
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2024-10-11 13:50