Simplifying UX in a fragmented blockchain world

Disclosure: The views and opinions expressed here are solely those of the author and do not necessarily represent the views and opinions of crypto.news editorial.

When Ethereum (ETH) co-founder Vitalik Buterin announced the completion of the long-awaited Merger in September 2022, efficiency was the name of the game in blockchain innovation. In recent years scalability has surpassed efficiency as the most pressing issue among the ‘big five’ challenges currently facing web3.

Prominent layer-1 chains are now giving way to a wave of emerging layer-2 solutions that promise to take the blockchain ecosystem to new heights. Unlike the combined efforts that drove the merger, this latest phase of blockchain development – ​​dubbed “The Surge” in the Ethereum space – has caused a number of issues to emerge. A new scalability paradigm pioneered by the ever-expanding L2 galaxy has given rise to a fragmented blockchain ecosystem characterized by multiple chains, each with their own rules, tokens, and transaction fees.

For some, participating in capitalism means believing that competition breeds success. But when it comes to blockchains, more isn’t necessarily better. Just as technical shortcomings in the early days of the internet made it difficult for newcomers to navigate websites, the complexity of managing multiple blockchain layers creates significant challenges for users.

If we are to drive Web3 to mass adoption, it’s time to ask the question: How many layers are too many?

Challenges of a fragmented blockchain ecosystem

As we pile more layers onto our proverbial blockchain pie, challenges continue to emerge in the form of hindered usability and stifled innovation for both users and developers. Although the Wild West of L2s seems like a net positive, as more complexity is piled on top of the user experience, we run the risk of our blockchain pie becoming nearly impossible to slice.

Joining Web3 can be a daunting task in itself, so juggling various wallets, tokens, and fee programs across chains to accomplish simple tasks leads to a sub-par or even challenging user experience. For many, a fragmented ecosystem makes the barrier to entry much higher.

The challenge facing developers is quite similar. The complexity of working across multiple layers can mean slower build times and increased development costs. The lack of interoperability across an ever-increasing number of chains further complicates project scopes, especially for teams trying to build cross-chain applications. In the current L2 industry, progress is easily hindered when developers feel like they have to navigate a complex environment.

Tier 2s: A missing potential

Of course, this layer cake approach to scalability is not without its benefits. There is rhyme and reason to the disjointed system of current L2 constellations that dominate the blockchain industry.

On-paper L2 solutions offer significant benefits such as improved scalability and speed. Transferring transactions from L1 to L2 means increasing the overall volume of transactions that can be processed by that L1. Taking the response even further, L2s can lead to faster and more cost-effective transactions, improved security, and an extra layer of protection for sensitive transactions.

However, as we have seen, these benefits can only outweigh the disadvantages for a while. Fragmentation creates a complex web that can be overwhelming, especially as the scope of L2 solutions continues to expand and a clear solution remains elusive.

A unified approach

Fortunately, there is a promising solution to the challenges presented by L2 racing: chain abstraction. By removing the complexities and overarching technicalities of blockchain that regularly impede usability, chain abstraction can help preserve the broader benefits of decentralized technology while also lowering the barrier of entry to general consumers.

Chain abstraction, a solution that many advocates of mass adoption already support, allows us to create a unified layer that communicates with multiple blockchains and simplifies user interactions. This approach allows users to manage assets and execute transactions without needing to understand the complexity of each underlying layer.

Of course, the chain abstraction does not exist in isolation; This is where omnichain infrastructure comes into play. A practical application of chain abstraction, omnichain infrastructure takes the concept further by empowering the creation of a harmonious, interoperable ecosystem that facilitates seamless interaction between various blockchains.

Omnichain infrastructure enables simplified user-centered design and makes blockchain interactions more intuitive and efficient by empowering sharding solutions such as seamless cross-chain transactions and secure and efficient verifications while encouraging developer flexibility.

Multi-chain today, multi-chain tomorrow

So where do we go from here?

While it is true that the proliferation of L2s has brought web3 into an era of fragmentation, complexity still exists in blockchain. Layers can be found everywhere, both within and beyond the L1 and L2 paradigms. Ultimately, this transformation is becoming more widespread as legacy institutions and consumer interests fuel an explosion of new innovations, new platforms, and new needs.

At this point, our first question comes up again. Because for the majority of new users, anything beyond a single integrated layer may be too much.

If scalability is as important as most developers claim it is (and spoiler alert, it is), we can’t ignore the potential of omnichain infrastructure to aid our mass adoption journey. By connecting products and blockchains, combining data to create seamless experiences, and making the power of web3 easily accessible, we can fuel even the most ambitious endeavors.

Charles Wayn

Charles Wayn is a web3 entrepreneur and co-founder of Galxe, web3’s largest on-chain distribution platform. Galxe stands out with the participation of millions of users through a robust blockchain network, contributing significantly to the growth and advancement of leading industry players. Prior to founding Galxe, Charles led DLive to become the world’s largest blockchain-based live streaming platform, resulting in its acquisition by BitTorrent, where he continued his role as Executive Vice President of Interactive Entertainment. Galxe’s work, backed by industry giants such as Multicoin Capital, Dragonfly Capital and Coinbase Ventures, reflects the company’s commitment to introducing crypto enthusiasts to the practical applications of web3, fostering community affinity and unlocking new economic potential for both its users and partners. Charles holds a Bachelor of Arts degree from the University of California at Berkeley.