Opinion: Maxim Legg, founder and general director of Pangea
The blockchain industry is in the face of the crisis of its own creation. While we celebrate theoretical transaction speeds and advertise decentralization, our data infrastructure remains heavily rooted in technology from the 70s. If the 20-second charging time would condemn to the Web2 application, why will we decide on it in Web3?
Because 53% of users abandon websites after only three seconds of load, acceptance of these delays in our industry is an existential threat to the party.
Tardy transactions are not only a problem with service. High performance chains, such as aptos, are capable of thousands of transactions per second. However, we try to access their data through “Frankenstein Indexes” – systems twisted from tools such as Postgres and Kafka, which have never been designed for the unique requirements of blockchain.
Hidden cost of technical debt
The consequences go far beyond plain delays. Current indexing solutions force programming teams to be impossible to choose: either build non -standard infrastructure (using up to 90% of development resources) or accept grave restrictions on existing tools. This creates the performance paradox: the sooner our chain chains, the more observable the bottleneck of data infrastructure becomes.
In real conditions, when the market manufacturer must make arbitration trade, they basically fight their own infrastructure, in addition to competing with other traders. Each milliseconds spent election nodes or waiting for state updates represents omitted capabilities and lost revenues.
This is no longer theoretical. The main trading companies currently serve hundreds of nodes to maintain a competitive response time. The infrastructure bottleneck becomes a critical failure point when the market requires peak performance.
Established automated market manufacturers can operate with low volume tokens, but they are essentially inappropriate for institutional trade.
Most blockchain indexers are now better described as data aggregators that build simplified chain status, which act in the case of basic apply, but fall apart under grave load. This approach could be enough for first generation DEFs, but it becomes completely inappropriate in the case of changes in real time in many high -performance chains.
Rembrying data architecture
The solution requires a fundamental way to handle the blockchain data. Modern generation systems must move data directly to users instead of centralization of access via time-honored database architecture, enabling local processing for real low delay performance. Each data point requires verifiable origin, with time markers and evidence ensuring reliability while reducing the risk of manipulation.
A basic change is underway. Complicated financial products, such as derivative instruments, become possible with faster block chains and lower gas fees. In addition, derivatives are used to discover prices that are currently held on centralized stock exchanges. Because the chains become faster and cheaper, derivative protocols will become the main place to discover prices.
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This transition requires infrastructure capable of providing data “in the blink of an eye” – from 100 to 150 milliseconds. This is not arbitrary. It is a threshold in which people are delayed. Everything is slowly narrow by what is possible in decentralized finances.
Filthy convergence of market forces
The current model of excessive nodes and inconsistent delay profiles will not scale in the case of grave financial applications. We see this when significant trading companies are building more and more intricate non -standard solutions – a clear signal that the existing infrastructure does not meet the needs of the market.
Because faster chain chains with lower gas fees allow sophisticated financial instruments, the ability to send state changes in real time becomes crucial for market performance. The current model of aggregate data with multi-second delays fundamentally limits what is possible in decentralized finances.
The emerging chain chains push the data capacity to unusual levels. Without matching the progress in data infrastructure, we will create Ferrari engines connected to bicycle wheels – all power without the possibility of effective apply of it.
Change of change
The market will force this change. Those who do not adapt will be more and more irrelevant in the ecosystem in which access to real -time data is not only a luxury, but a fundamental necessity of participation.
Opinion: Maxim Legg, founder and general director of Pangea
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
