Opinion: Jin Coone, co -founder and chief official of strategy
Crypto has made a long way to increase the productivity of transactions. The new layer 1S (L1S) and side networks offer faster and cheapest transactions ever. However, the focus has been on the basic challenge: liquidity fragmentation-capital prose and users through a constantly increasing Blockchains maze.
Vitalik Buterin, in a modern blog mailThe most prominent success of the scaling led to the unexpected coordination challenges. With the presence of many chains and value that was discussed between them, the participants face a daily set of bridge, switching and switching the wallet.
While these issues affect Ethereum, they also affect almost every ecosystem. Regardless of the progress of the new Blockchains, liquidity is “islands” that struggle to communicate with each other.
The real costs of fragmentation
Feal liquidity means that there is no “gathering” of assets for traders, investors, or decentralized financing applications (Defi) to benefit from it. Instead, it hosts all Blockchain or its horrific liquidity side network. For a user who wants to buy a symbolic symbol or access a specific lending platform, this cooking offers multiple headaches.
Switching is a specialized network and operating specialized portfolios and pushing multiple transactions fees out of smoothness, especially for those less intelligent for technology. Liquidity is also thinner in every isolated gathering, which leads to price differences and a high slippage on deals.
Many users resort to bridges to transfer capital via chains, however it was this Repeated goals for the exploitsRaise fear and lack of confidence. If it is very stressful or risky to move the liquidity around it, Defi failed to get a major momentum. Meanwhile, projects are scrambled to publish via multiple networks or risk leaving them behind.
Some observers are concerned that fragmentation can return people to some dominant chains or central exchanges, undermining the decentralized ideals that have fueled the Blockchain height.
Familiar repairs, with continuous gaps
Solutions appeared to address this tangle. Bridges and assets are wrapped in the basic intercourse, but the user experience remains exhausted. Crosschain complexes can direct symbols through a series of bites, however they do not generally merge the basic liquidity. It only helps users to move in it.
Meanwhile, ecosystems such as Cosmos and Polkadot bring the interim operation within their limbs, although they are separate worlds in the wider encryption scene.
The problem is essential: Each series is seen as distinct. Any new chain or sub -network must be connected to the Earth level to really unify the liquidity. Otherwise, it adds another liquidity island that users should discover and the dam. This challenge is multiplied by chains, bridges and compounds who see each other as a competition, which leads to deliberate silence and make fragmentation more clear.
Merging liquidity into the basic layer
Integration in the primary layer is treated with liquidity fragmentation by including bridging and guidance functions directly in the basic infrastructure of the chain. This approach appears in some layer 1 protocols and specialized frameworks, where the interconnectional operation is treated as an essential element instead of optional addition.
recently: What are the traps of exit liquidity – and how to discover it before it is too late
The audit contract automatically addresses Crosschain connections, so that new chains or side networks can launch with immediate access to the wider ecosystem liquidity. This reduces dependence on third -party bridges that often provide the risk of safety and use of the user.
ETHEREUM’s special challenges with the incommelugum (L2) solutions emphasize the cause of integration. The different participants – ethereum as a settlement layer, and L2S that focuses on implementation, and various bridges services – their own motives, leading to fragmented liquidity.
Burin’s references to this issue highlight the need for more coherent designs. The integrated basic layer model combines these components together at launch, ensuring that Capital can flow freely without forcing users to move in multiple portfolios or bridges solutions or rollups.
The integrated guidance mechanism also integrates the transfer of assets, simulating a uniform liquidity gathering behind the scenes. By picking up a small portion of the total liquidity flow rather than charging users for each transaction, these protocols reduce friction and encourage movement of capital across the network. The developers who publish the new Blockchains get immediately to a common liquidity base while ultimate users avoid clarifying multiple tools or facing unexpected fees.
This focus on integration helps maintain a smooth experience, even with more online networks.
Not just ethereum case
While the BUTERIN Blog Publication focuses on ETHEREUM, retail is an ecosystem. Whether the project is based on a series compatible with the ETHEREUM virtual machine, a webassembly platform, or anything else, the retail trap arises if the liquidity is fenced.
Since more protocols explore the basic layer solutions-the inclusion of automatic inter-operational operation in the design of the series-there is hope that future networks will not save the capital more, but instead it helps to unite it.
A clear principle shows: productivity means little without contact.
Users should not need to think about L1S, L2S or Sidechains. They only want smooth access to decentralized applications (DAPS), games and financial services. The adoption will follow whether the transition to a new chain looks identical to work on a familiar network.
Towards a unified future means
The concentration of the Crypto community on the productivity of transactions revealed an unexpected paradox: the more chains we create for speed, the more we encourage the strength of our ecological system, which lies in its common liquidity. Each new series aims to increase the capacity creates another isolated group of capital.
The construction of the Blockchain infrastructure directly provides a clear path through this challenge. When protocols deal with Crosschain communications automatically and directly direct assets, developers can expand without dividing the base of users or capital. Success in this model comes from measuring and improving the value of value smoothly through the ecosystem.
The technical foundations of this approach exists today. We must implement it carefully, with interest in safety and user experience.
Opinion: Jane Coone, co -founder and chief official of strategy in Saga.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
