The impact of blockchain on technology and society can not be overstated. Since entering the picture following the discovery of Bitcoin in 2009, the blockchain has influenced many industries, even as it’s become a vital institutional technology itself. Blockchain technology has disrupted institutions and traditional social systems across the globe, creating new economies and incentives that have filled gaps left unattended by conventional institutions. 

Drew Pascarella, a senior lecturer of Finance at Cornell University opined that “Blockchain has the potential to be quite disruptive and make the way people work fundamentally more transparent and collaborative in the future.” This opinion is a general consensus across the industry. 

The global blockchain technology market was valued at $17.57 billion in 2023. This figure has grown to $27.84 billion in 2024 and is poised to reach $825.93 billion by 2032. The CAGR in this forecast period is 52.8%. Figures like these show how far blockchain technology has come, an evolution that we’ll be discussing in this article. Some diverse applications of this disruptive technology include Layer-1s, Layer-2s, and Real-World Assets (RWAs) and these are what we will be focusing on — highlighting the growth through some key projects. 

Understanding Blockchain Technology

The blockchain is a decentralized ledger technology that records transactions across multiple nodes (re: computers) within a business network. Before the advent of the blockchain, transactions, and record-keeping in industries suffered from vulnerabilities like fraud and cyber-attacks. A limited level of transparency also affected the operations and bottom lines of businesses in different sectors. All these have since been drastically reduced or eradicated with the introduction of blockchain technology. Now there’s greater trust, improved security, and efficiency with faster transaction speeds becoming the norm.

Layer-1 Solutions

Layer-1 blockchains like Bitcoin and Ethereum provide the core infrastructure for the blockchain. These chains provide network security and process transactions with Bitcoin processing up to 7 transactions per second (TPS), while Ethereum processes around 15 TPS. Traditional payment systems on their part depend on banks and payment processors to facilitate transactions. Settlements for these transactions often take 1-3 business days to reflect depending on the banking institution and the type of transfer.

Layer-1’s are becoming increasingly important for cross-chain transactions. The need for communication and data sharing with other networks has seen the rise of interoperable platforms like Aptos and MANTRA Chain. 

Aptos is a layer-1 community-driven network governed by the people who build on it. It leverages the novel Move programming language and a parallel execution engine to improve the throughput of transactions significantly. The blockchain processes approximately 160,000 TPS, validating them in under one second.

MANTRA Chain is a purpose-built layer-1 blockchain ecosystem that integrates RWAs into the blockchain space. According to Boston Consulting Group (BCG) research, the tokenized asset market will reach $16 trillion by 2030 (10% of the global GDP). Another study by Binance shows that the market value of tokenized RWAs has surged past $12 billion. This is proof that RWAs are quickly becoming a huge market with the MANTRA blockchain at the forefront of this niche offering an innovative solution: a permissionless environment where permissioned applications can flourish. This bridges the gap between traditional finance (TradFi) and decentralized systems.

Scaling Solutions With Layer-2

The blockchain trilemma is a term coined by Ethereum co-founder Vitalik Buterin, and it refers to the challenge of achieving three critical aspects of blockchain technology: decentralization, security, and scalability. The first pillar, security, is vital because only robust defenses can prevent and withstand malicious attacks. The peak of scalability is having blockchains accommodate an increased number of transactions and users, without a substantial increase in fees or slower transaction times. As highlighted in this article, decentralization is an essential feature of blockchain technology as control over a network is evenly distributed among participants, ensuring fairness and transparency.

Layer-2 solutions are solving this trilemma, and a great example of this is Metis. Metis is an Ethereum layer-2 Rollup platform that offers simple and fast smart contract deployment within the network. Metis provides solutions to some of the big challenges present on the Ethereum network, including transaction speed, cost, and scalability. This layer 2 is also the first Optimistic Rollup that has achieved sequencer decentralization, eliminating single points of failure and properly aligning incentives between all network participants.

Privacy and Censorship Resistance

The need for privacy and censorship resistance has seen the rise of privacy-preserving cryptocurrencies like TOMI. TOMI is the native token of tomiNET, a parallel worldwide web designed as an alternative to the government-controlled and censored web. It is targeted at users in locations where their access to open information is limited, or where businesses cannot ensure their domain-based property rights on the existing Web2 infrastructure. TOMI combines the best Web2 and Web3 technologies for a privacy-preserving, self-governing internet. 

The need for blockchain interoperability

There are currently over 55 blockchains, and these networks communicate with each other, sending and receiving data and tokens are important, especially in today’s blockchain landscape. This is blockchain interoperability. Emerging blockchains with unique features and use cases must be able to communicate and share data. This allows for seamless collaboration between different networks, thereby improving the overall utility and efficiency of blockchain technology. 

While most layer-1 blockchains don’t inherently support cross-chain interoperability, Aptos champions building a flexible and adaptable infrastructure, allowing for potentially easier integrations with cross-chain protocols. Because MANTRA is a blockchain designed for RWAs, it likely focuses on the interoperability between TradFi systems and blockchain networks. As an Ethereum layer-2 solution, Metis inherently offers interoperability with the Ethereum ecosystem. And even though tomiNet’s main focus is creating a censorship-resistant internet, it will likely adopt interoperability features that ensure seamless communication between its network and the existing Web2 infrastructure. 

Conclusion

The blockchain industry continues to grow, and the technology is marked by innovative projects like the ones mentioned in this article. These platforms offer unique solutions to the challenges of scalability, security, and decentralization on the blockchain, as they shape a more inclusive and digital ecosystem.

In the past few years, there has been a significant increase in the global adoption of crypto, particularly as this distinct asset class has increasingly become part of traditional finance (Trad-fi) systems today. Research indicates that by 2024, an astonishing 6.8% of the world’s population – approximately 560 million people own cryptocurrencies.

Narrowing down on the western hemisphere, the United States has continued to be a frontrunner in this ongoing digital race, with a remarkable 40% of American adults now holding some cryptocurrency or the other (up from 30% in 2023). Not only that, the ownership demographic landscape is also evolving rapidly, with women’s ownership rates surging from 18% in 2023 to 29% in early 2024. 

Number of verified crypto users between 2016 – 2023 (source: Techreport)

Globally, too, a growing number of countries are embracing cryptocurrencies at varying levels. India, for instance, currently lays claim to more than 93.5 million crypto users, while Vietnam boasts of an impressive ownership rate of 21.19% (followed closely by the U.S. at 15.56%).

Lastly, viewing this from an external perspective this growth is attributed to the resilience in the cryptocurrency market. After a challenging 2022, the market has progressed well all through 2023-2024, propelled by the introduction of various Bitcoin ETFs and improvement in crypto regulatory clarity.

Global BTC ownership rates (source: Crypto.com)

Cultivating trust and accessibility

With the crypto realm having matured greatly in recent years, many companies are now making use of innovative strategies to attract new users while retaining their existing clientele. At the forefront of these efforts stands user education. In recent years, firms like Coinbase and KuCoin have all started offering comprehensive tutorials and webinars to demystify the world of digital assets for potential investors.

Similarly, regulatory compliance is another domain that has been seen by many as a cornerstone of trust-building and user acquisition. To this end, entities like Binance have adapted their operations to align with local regulations. The exchange’s recent registration with India’s Financial Intelligence Unit (FIU), exemplifies this ideal.

Moreover, platforms like Crypto.com offer reward programs where users earn cashback in crypto for transactions made using their cards, incentivizing spending and encouraging users to remain engaged with the platform.

Apart from such traditional efforts, companies like VALR, Africa’s largest cryptocurrency exchange, have recently taken user engagement to a completely new level. The exchange’s innovative “Global Treasure Hunt” competition, for example, has been designed to be a four-month extravaganza — offering both new and existing users the chance to earn ‘Mystery Boxes’ containing a share of $80,000 worth of cryptocurrency rewards.

The competition’s structure is designed to encourage active participation and platform exploration. Users begin by selecting a region of their choice, each themed around different global landmarks (from Tokyo to Angkor Wat). Such a unique gamification element adds an exciting layer of adventure to the crypto experience.

The future is crypto. Here’s why

Examining data found on the internet, it is evident that various signals point towards a significant increase in cryptocurrency usage in the next few years. This trend is likely to be further driven by the changing financial trends and regulatory environments which are currently being established. Likewise, there is a growing political backing for cryptocurrencies, especially among younger voters who are pushing for digital assets.

Furthermore, the US Securities and Exchange Commission (SEC) approving multiple Bitcoin ETFs has become a major factor attracting possible new investors. Around 21% of non-owners have stated that these approvals have increased their inclination to invest in cryptocurrencies.

In the US specifically, this may mean about 29 million new users entering the crypto industry, leading to a significant change in the landscape.

Focused on what lies ahead, the cryptocurrency market is on the verge of a new era, largely propelled by the previously mentioned engagement tactics. Hence, with digital assets gaining more acceptance from individuals and institutions, we can anticipate an increase in innovation, expansion, and collaboration in both traditional finance and cryptocurrency sectors. Exciting times are coming!!

Blockchain technology has increased potential, but one of the biggest challenges has been its fragmentation. With so many different blockchains, each with its own tools and ecosystems, building decentralized applications (dApps) that work smoothly across them can be tough. That’s where chain abstraction comes in, it’s transforming the landscape by providing a way to bring everything together. In this feature, we chat with Roy Hui, Co-founder of LightLink, and Keer Liu, Ecosystem Growth Lead at Orbiter Finance, to explore how chain abstraction is reshaping blockchain development and what it means for the future of Web3.

The Need of  Chain Abstraction and Why Does It Matter?

At its core, Chain Abstraction seeks to remove the complexities of interacting with different blockchains. Roy Hui says, “In traditional programming, developers no longer write machine-level code; we use high-level languages that abstract the complexity. Chain abstraction does the same for blockchain.”

Chain abstraction is a concept that simplifies the user experience by hiding the complexities of blockchain technology, allowing end users to focus on the functionality of decentralised applications rather than the underlying infrastructure. It prioritises the user experience for gaming, DeFi, or social applications without requiring the management of the underlying blockchain. Keer Liu highlights the importance of simplifying the process to allow users to concentrate on functionality without concern for the underlying infrastructure. In this scenario, dApp developers can expect a substantial increase in conversion rates when drawing in users from Web2, whether through media campaigns or referrals from Web3 users.

Research indicates that the approach improves blockchain accessibility, allowing users to easily interact with dApps across different networks without worrying about manual asset bridging, managing different gas tokens, or frequent network switching. The promise of chain abstraction lies in making these complexities invisible to users, creating an ecosystem where various blockchains can be accessed through a single interface. This significantly enhances interoperability and improves the overall user experience.

Bringing Web2 Developers into Web3

Chain abstraction has the significant advantage of enablings developers familiar with Web2 technologies to move into Web3 without having to master blockchain tools. Developers can easily onboard in Web3 by utilizing open-source or subsidized tools by blockchain companies. For example, LightLink’s Bolt plugin allows developers to easily create NFTs using simple API calls, removing the need to handle the technical hurdles of blockchain infrastructure.

This accessibility is critical for businesses and developers interested in utilizing Web3 capabilities through NFTs, digital products, or secure financial transactions without the hassle of navigating multiple blockchain systems. As Keer Liu emphasizes, chain abstraction allows developers to build applications using the available technologies without being limited to a single blockchain, allowing them to focus on enhancing user experiences.

Solving the Interoperability Problem in Layer 2 Solutions

Layer 2 solutions have been designed to scale blockchains like Ethereum but often need more cohesion. This makes it difficult for developers to build apps operating seamlessly across multiple Layer 2 networks. Chain abstraction solves this issue by allowing developers to choose the best chain for their applications while the abstraction layer handles the underlying complexities.

Earlier this year, LightLink processed over 100,000 gasless transactions per day, powered by its Bolt plugin. The platform has over 200,000 users, including many developers utilising its gasless transaction model. The Bolt plugin enables minting up to 1,400 NFTs per second, showcasing how chain abstraction enhances scalability and efficiency for Web3 projects.

This unified approach also addresses the challenges developers and users face with liquidity and wallet aggregation. By creating a unified liquidity layer, users can manage assets across various chains from a single interface, eliminating the need to switch wallets or networks. This solution reduces user friction and increases developers’ efficiency.

Challenges of Chain Abstraction

While chain abstraction is a game-changer, there are challenges to overcome. Roy Hui mentions that one of the primary challenges is the need for more standardization across blockchains, akin to the confusion before the standardization of USB Type-C. Without such standards, chain abstraction can’t fully scale.

Keer Liu adds that ensuring security and managing cross-chain interactions are technical challenges. When dealing with many blockchains, each with its consensus mechanism, achieving seamless and secure communication can be complex. The risk of fragmentation in how assets and data move across blockchains remains, highlighting the need for solid communication protocols and secure frameworks​.

The Future of Chain Abstraction

Despite these challenges, Hui and Liu are optimistic about the future of chain abstraction. Hui believes chain abstraction will lead to more ecosystem applications, users, and liquidity, allowing developers to focus on building decentralized applications without worrying about cross-chain compatibility issues. This will be important for accelerating Web3 adoption, especially as blockchain technology grows and diversifies.

Liu envisions chain abstraction as the key to fostering a more interconnected blockchain ecosystem, where mass adoption can happen without users needing to understand blockchain intricacies. By simplifying user interfaces and interactions, chain abstraction has the potential to achieve significant economic growth and innovation in the blockchain space.

Conclusion

As blockchain technology evolves, chain abstraction is crucial for simplifying and unifying the fragmented ecosystem. By removing the complexities associated with blockchains, developers, and businesses can create faster, efficient, and scalable applications. With tools like LightLink’s Bolt plugin and Orbiter Finance’s innovations in liquidity aggregation, chain abstraction enhances accessibility and streamlines the experience for users and developers alike. The future of blockchain must be simple, with easy access and scale.