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Home»Blockchain»The paradox of progress: Blockchain’s true breakthrough lies in his limitations
Blockchain

The paradox of progress: Blockchain’s true breakthrough lies in his limitations

2025-03-09No Comments7 Mins Read
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Publication: The opinions and opinions expressed here are exclusively to the author and do not represent the views and opinions of the editorial editorial of crypto.news.

Imagine a world where every country had its own internet – one for France, one for Japan, one for the US – and none of them could talk to each other. Your e -mails would not be sent across boundaries, social media would be limited to your nation and global trade. Just a multi-billion dollar innovative dream that is stuck in walled gardens. That is exactly where blockchain is today.

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The illusion of progress that stimulates the innovation filemma

Every technological revolution starts with an obsession: how do we push the limits of what is possible? In Blockchain, this often means faster transactions, cheaper costs and higher scalability. But history tells us something else. Innovation rarely follows a linear path. Instead, the technologies that reform industries do not expand alone; They redefine the limits they limit.

Take the internet. The early days were defined by walled gardens – AOL, Compuserve and Microsoft Network. Each tried to build their own ecosystem, capture value by limiting interoperability. But as the open web appeared, these walled gardens break down. The internet did not succeed because it removed limitations; It succeeded because it again defined them – making protocols (HTTP, SMTP, TCP/IP) that made confidential, seamless communication possible.

Blockchain is located in a similar intersection. The obsession with scalability has led to fragmented solutions rollups, sidechains and alternative low-1 block chains-milk solved on a specific problem, but adds complexity to the wider ecosystem. But in the rush to scale we have overlooked one crucial element: connectivity.

The blockchain room was not intended as a collection of walled gardens, but that is what it has become. The consequences? A handful of important inefficiencies:

  • Bad user experience: Try to move assets from Ethereum (ETH) to Solana (SOL), Bitcoin (BTC) or Cosmos Hub (Atom). It is like compiling Ikea -furniture without giving the manual – but unnecessarily painful.
  • Siled Innovation: Developers build incredible applications, but many are limited to a single chain. The result? Limited users, lack of adoption.
  • Fragmented liquidity: Defi applications are struggling to work in chains and liquidity is broken. Users must jump through hoops (and multiple portfolios) to perform simple transactions. So everyone holds on to chains in their operational comfort zone.
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The real question is therefore not only how the highest transactions can be scaled or managed per second, but also how you can reconsider some fundamental limitations that define the future of blockchain.

The limitation that matters: interoperability, not implementation

From 2024 there are more than 120 L1 block chains and dozens of L2 solutions. According to the Electric Capital developer report, the number of active developers in all blockchain projects grew by 60% in 2023, with new chains and solutions that continue to arise.

Every blockchain has its own consensus mechanism, implementation environment and tokenomics that works with its strength in its silo. For example, Ethereum uses the Ethereum Virtual Machine (EVM) and firmness for smart contract development, while Solana uses a different architecture with languages ​​such as peace. This diversity, although promotes innovation in their own ecosystem, creates considerable barriers for seamless interaction between chains.

Interoperability between chains with such fundamental differences – in coding languages, virtual machines and implementation paradigms – requires more than just bridging assets. It means overcoming important architectural and technological barriers.

The paradox of progress: Blockchain's true breakthrough is in its limitations Opinion - 1

And to solve these problems, we have built bridges – literally.

The bridges we built … and why they keep breaking

Wrapping tokens, liquidity hubs, cross-chain message systems-milk promised a seamless experience, but each came with considerations. Vulnerabilities for security. Slow speeds. Current processes.

Bridges are in their current form as a duct tape on a leaking pipe. They work – until they don’t.

The coding language differences and the lack of common virtual machines increase the costs of building bridges and integration layers between block chains. Every time a developer builds a cross-chain bridge or interoperability layer, they must take into account:

  1. Language translation: Converting between firmness, rust or Bitcoin’s script is not only time -consuming, but also error -sensitive. In 2023, more than 60% of the active blockchain developers worked on interoperability solutions, which solve on average 1.5x more time and solve cross-chain logic than applications with one chain.
  2. VM -Compatibility: Bridging the EVM and Solana’s proof-of-history or Bitcoin’s script is far from simple. That is because it is not just about moving tokens from one chain to another – it is about ensuring that the logic behind decentralized applications is compatible in various implementation environments.
  3. Security risks: The more interoperability you introduce between different ecosystems, the more potential there is for vulnerabilities, because hackers have more access points for target. According to a report from the Chain Salysis of 2023, cross-chain bridges were responsible for more than $ 1 billion in losses as a result of infringements of security alone in 2022 good for nearly 70% of all stolen funds in the blockchain room. The complexity involved to ensure that cross-chain interactions are safe can increase the costs of insurance, audits and continuous monitoring. Blockchain projects now spend in the average of $ 200,000 a year on smart contract audits and cyber security solutions, an increase of $ 50,000 only two years ago.
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Each of these obstacles stimulates the costs of the developer and ultimately results in poor user experience due to higher gas costs, transaction times and potential errors or malfunctions in cross-chain applications.

So what is the future? As co-founder of Ethereum Vitalik Buterin said:
“The future of Blockchain is not about being the best in one area, but about being the best in collaboration.”

A new mental model: composability builds interoperability

Interoperability is the enabler that has set the basis for composability.

Composability refers to the ability of different blockchain components – such as smart contracts, protocols and applications – to interact seamlessly, making it possible to make more complex and versatile functionalities. This modular approach enables developers to build on existing components, which promotes innovation and efficiency.

In the context of blockchain interoperability, composability ensures that Dapps can work over multiple chains. For example, a Defi application can use liquidity pools from different block chains, so that users offer better rates and more options.

Because at the end of the day a fast blockchain is useless if it exists isolated.

A presto. Driving to building open highways.

Read more: The reports of the death of Ethereum are greatly exaggerated Opinion

Davide Menegaldo

Davide Menegaldo Is the CCO of Neon EVM. Since the end of 2013, he has been at the forefront of Blockchain Innovation. With a decade experience in blockchain and crypto include its interest areas web3, Defi, bets and NFTs. Davide started his entrepreneurial trip in 2015 and founded his first startup to enable global charities to accept Bitcoin donations. He also facilitated community involvement and actively participated in local Bitcoin -measuring ups and crypto conferences in Europe. In 2023 Davide started his journey with Neon Labs leading commercial and business fronts. He remains focused on stimulating the growth factory at NEON EVM, while leading to the development of innovative business lines, cherishing strategic partnerships and defending growth in both Solana and Ethereum Blockchain -Ecosystems.

See also  How blockchains can solve greenwashing and contribute to climate action

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