Confused by wrapped assets? Fret no more! This post explores the future of blockchain transactions, including advanced smart wallets and decentralized solutions. Discover how blockchain is getting easier to use.
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| The future of blockchain is here, and it's user-centric! This explores the exciting world of vertical scaling, smart contracts, and how Ava Protocol is leading the way. |
This post dives deeper into an interview with Chris Li, founder and CTO of Ava Protocol, exploring the evolving landscape of blockchain development and the challenges that lie ahead. Li, a seasoned entrepreneur, offers valuable insights into the industry's current state and the direction it's headed.
While the initial focus in blockchain development was on increasing transaction speeds (horizontal scaling), Li observes a crucial shift towards vertical scaling. This new approach prioritizes enhancing the capabilities of each transaction, going beyond just faster processing.
Imagine a blockchain that not only confirms transactions quickly but also allows for complex functionalities like automated investment strategies or multi-step NFT purchases within a single transaction. This is the power of vertical scaling, exemplified by the development of smart wallets and multi-signature solutions.
Wrapped Assets: A Stepping Stone, Not a Destination
Li sheds light on the limitations of wrapped assets, a popular solution for facilitating cross-chain transactions. Wrapped assets essentially involve locking your original crypto into a smart contract on another blockchain, receiving a wrapped version in return. While this enables interoperability, Li argues that it introduces a degree of centralization by relying on custodians to manage the wrapped assets. This contradicts the core principle of decentralization that underpins blockchain technology.
As an alternative, Li proposes emerging solutions like atomic swaps, cross-chain bridges utilizing decentralized oracles, and advancements in zero-proof technology. These approaches offer the same benefits of wrapped assets (cross-chain functionality) while maintaining a truly decentralized ecosystem.
The Blockchain Trilemma
The "blockchain trilemma" refers to the inherent challenge of achieving all three desirable qualities (security, scalability, and decentralization) within a blockchain. Li acknowledges this difficulty, highlighting that improvements in one area often come at the expense of another.
However, he isn't discouraged. He explains how Ava Protocol tackles this trilemma by leveraging the network of trusted operators within the EigenLayer ecosystem. This approach adds both computational power and storage resources, enabling faster and more cost-effective transactions on Ava Protocol. Additionally, it allows users to build intricate workflows with chained actions triggered by various events, a significant advancement in transaction capabilities.
One of the biggest hurdles for mainstream blockchain adoption is the technical complexity faced by users. Managing private keys, the digital signatures that grant access to crypto wallets, can be daunting for newcomers. Li emphasizes the need for solutions that reduce this barrier to entry.
He explores the potential of smart wallets as a way to simplify user experience. Smart wallets act as intermediaries, managing user accounts with minimal access permissions. This allows users to continue using familiar wallets like MetaMask while enabling features like creating workflows without incurring gas fees (transaction fees on the blockchain). Additionally, smart wallets can be designed to connect with traditional Web2 authentication methods like Google accounts or two-factor authentication, further improving usability.
Ava Protocol: Building a User-Centric Future for Blockchain
Li delves into the motivations behind Ava Protocol. Inspired by earlier blockchain automation solutions that relied on centralized components, Ava Protocol's team aimed to create a more user-friendly and decentralized experience. Through extensive research and development, they built specialized on-chain data storage to facilitate user-defined workflows.
The positive feedback received during the testnet launch of their Automation Hub validates their approach. Now, with the third generation of automation solutions built on EigenLayer, Ava Protocol is poised for wider adoption. They've incorporated features like drag-and-drop visualization tools for workflow creation, empowering users with little to no coding experience to build intricate DeFi (decentralized finance), NFT (non-fungible token), or real-world asset (RWA) workflows.
A Brighter Future for Blockchain
Chris Li's insights paint a picture of a maturing blockchain landscape. The industry is moving beyond the early focus on transaction speed and is now prioritizing user experience and functionality. The concept of vertical scaling holds immense potential, allowing for the creation of sophisticated applications and workflows within the blockchain itself.
Additionally, the development of new solutions like smart wallets and decentralized alternatives to wrapped assets paves the way for a more user-friendly and truly decentralized future for blockchain technology. As Ava Protocol demonstrates, user experience is becoming a central focus, with innovative approaches aimed at simplifying complex processes and empowering users to interact with the power of blockchain without needing extensive technical knowledge.