Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of the crypto.news main article.
On the first Prime Day of 2023, Amazon facilitated the sale of 375 million items. Just one store, during one of the busiest days of the year, offers its users the ultimate convenience – a testament to the decades of infrastructure development in web2.
You might also like: Back to the drawing board: rethinking interoperability | Opinion
Compare this to the endless possibilities of a unified Web3 ecosystem, which, while much talked about, seems increasingly difficult to achieve, characterized by fragmented systems, longer transaction times and prohibitive costs.
Web3 proponents have long sought to accelerate efforts to mirror web2’s seamless experience and benchmarks. The biggest barrier to this dream is ensuring scalable networks that maintain decentralization as we grow.
Enter sharding technology. It has been widely spoken and experimented around the world, and now it is finally a reality. From what the developer community has seen of it so far, it could be the messiah the web3 community has been waiting for for a long time. Rightly so!
Sharding technology at work
Let’s accept it. The existing web3 model is relatively slow, inefficient and expensive. It’s hard to convince the majority of the world’s internet users, let alone businesses and even the developer community, to quickly adopt the simplicity and convenience of web2.
The new emergence of Sharding technology now makes it more than an urban myth. While the technology has been talked about quite a bit by the titans of the industry, the launch of the recent Sovereign Chains marks the first application of its kind to integrate this groundbreaking technology. One that will advance the use cases of the best L1s and hundreds of L2s looking for scalability and interoperability solutions.
At its core, sharding involves splitting the network into smaller, more manageable pieces, while maintaining security, speed, negligible cost, and energy efficiency, even during times of exponential activity. Theoretically sound, its practical implementation in Sovereign Chains now proves that it can solve web3’s most pressing challenges, in a way that is economical, developer-friendly, and highly resource efficient. This means creating a blockchain capable of scaling 100x compared to Ethereum or Bitcoin, in a fraction of the time and energy.
One of the biggest sectors that will benefit from sharding technology is decentralized finance. It’s no secret that to compete effectively with today’s financial system, web3 must provide solutions that are ten times superior in every measurable way. By deploying sharding technology, it is possible to ensure that end users not only achieve parity with the old system, but can also enjoy improvements such as globally fair access, open playing fields, transparency, value creation, privacy and security.
The technology is built so that leading defi platforms are no longer bound by blockchain-specific restrictions, enabling interoperability with other defi products on every major chain, eliminating liquidity fragmentation and unlocking significant improvements in capital efficiency.
Beyond defi, the applications of sharding technology-powered sovereign chains extend to the gaming, healthcare, supply chain, education, government, and enterprise sectors. In gaming, for example, high throughput and low latency, combined with customizable transaction costs, enable radically different business models and gameplays. Developers can introduce innovative in-game reward structures, new economies, auctions, time-sensitive airdrops and more, ensuring seamless user experiences regardless of scale.
Understandably, all of this builds the foundation for the first-ever interconnected Web3 ecosystem, which adopts capabilities such as on-chain 2FA, native standards, easy-to-use aliases, and more to address critical challenges hindering widespread adoption of Web3.
Encourage adoption from the ground up
To achieve success for a major breakthrough in the web3 world, the first step is to gain the trust of the developer community. Almost the opposite of how consumer products in the traditional world target end users. What is common, however, is the goal of simplifying people’s lives by addressing the needs of early adopters.
Composability of digital assets and unbreakable security are other key benefits of sharding tech’s scalable architecture, allowing developers to focus on innovation rather than infrastructure.
Sharding technology provides a robust and scalable foundation for building next-generation dApps and interoperability of L2s with major crypto chains such as Bitcoin, Ethereum, and Solana. Something that is much needed for developers to leverage the strengths of multiple ecosystems to create more versatile and powerful products for last-mile user consumption.
Merging different chains into an ecosystem goes further than the traditional bridging of assets. Enhanced smart contract capabilities, custom VM environments, and comprehensive SDKs enable developers to create, test, and launch solutions that naturally operate more efficiently across multiple chains. This holistic approach lowers the barriers to entry and invites more talent, including the current Web2 developer community, to explore blockchain technology without the limitation of previous iterations.
Advancing the cause of sovereign chains
As the spotlight turns to the need for scalable Web3 infrastructure in a world where security and data concerns are rapidly imploding, expect network features such as parallel processing, confidential transactions, or VM-specific enhancements that can extend inherent functionality.
Achieving the seamless and comprehensive reach of existing web2 technology and promoting cross-chain collaboration is an ambitious but achievable goal. Through sharding technology and the introduction of Sovereign Chains, it is now possible to not only dream, but actually build a scalable, secure and cost-efficient architecture that can support the creativity of current and future web3 developers.
Read more: The Crypto Industry Moves Onwards and Forward Amid Mixed Signals | Opinion
Lucian Mincu
Lucian Mincu is a visionary infrastructure engineer, co-founder and chief information officer of MultiversX. He has extensive experience developing end-to-end startup solutions and designing and implementing highly complex infrastructure and network architectures. Lucian’s talent for solving complex technical challenges has been instrumental in establishing MultiversX as a Top-100 L1 project processing company with a maximum of 263,000 transactions/second, with a growing ecosystem of more than 8,200 dApps and 3,200 nodes. Before co-founding MultiversX, Lucian’s entrepreneurial and technical expertise was put into practice by co-founding and developing ICO Market Data, a platform for discovering ICO opportunities, filtering scams and supporting blockchain projects.
