Speed is not just a challenge for blockchain, but a deciding factor between adoption and obsolescence. If Web3 cannot match the seamless experience that users expect, it doesn’t matter how distributed or innovative it is.
Current development state speaks volume: According to the A16Z Builder Energy Dashboard, Crypto builders track where they are focusing their efforts. In infrastructure development, Layer 1 and Layer 2 projects account for about a fifth of the activities, with activity that accounting for one third of their segments. Given that most of these projects are focused on providing high transaction speeds without the corresponding high fees, it is clear that scalability and processing time are still major constraints in the industry.
However, blockchain scalability should not be the only lens to assess transaction speed. Achieving the highest transaction per second is not the end. This is a way to improve your user experience. The realms where Web3 is gaining the most traction: trading and gaming – fast payments are not luxury. This is a requirement to compete with the current Web2 position.
Defi and trading
Demand for chain trading is rising rapidly. According to A16Z’s annual Crypto State of Crypto Report, the Decentralized Exchange (DEXS) currently handles 10% of Spot Crypto trading. This is a dramatic change from just four years ago when the centralized exchange (CEXS) ruled 100% of the market.
Meanwhile, the total value of DEFI is locked (TVL) is expected to rise above $100 billion for the first time since 2021, with continued expansion of analyst projects continuing, with DEFI expected to grow at a CAGR of 45% until 2032.
However, Web3 is not competing in vacuum. Legacy finance is not static. If an on-chain trading platform wants to separate users from Tradfi, it should offer the same speed, seamless UX and reliability as platforms like Robinhood and Fidelity. In reality, blockchains do not match raw speeds with Tradfi’s centralized servers. Physics, delays and decentralization make it impossible. But that’s not where Web3 wins. That edge is not measured in milliseconds. This is measured in reliability, finality and programmable finance.
The real battle isn’t just about speed of execution. It’s about how much trust, efficiency and flexibility Web3 can inject into its financial stack. On-chain trading is not about making Tradfi obsolete. This is building a financial system where endibility is instantaneous, markets are open and speed is useful for trust rather than intermediaries.
Build your own game studio
The game has seen a flash of mainstream interest, from the early surge in Axie Infinity to the Collectibles Boom of the NBA Topshot, but long-term adoption remains elusive. This year, Ton emerged as a hub for blockchain-based gaming, with viral hits like Hamster Combat, Concept, and Katizen. These trends suggest that blockchain can add new layers of ownership and economic incentives to the game, but the success of the virus is not equal to sustainability.
The real opportunity lies in immediate asset settlement, true player ownership, and the permitted economy, but only if blockchain technology can operate at a speed that is indistinguishable from traditional game servers. If delays in trading or high fees create friction, Web3 games risk being novel rather than revolution. It’s not a fundamental change in the industry, it’s a niche experiment.
Unlike Defi and on-chain trading, which saw institutional support, blockchain games are still in the experimental stage. Developers face a variety of challenges. Traders may tolerate some trading costs, but gamers do not. If fees and latency disrupt gameplay, blockchain titles cannot compete with the seamless experience of traditional gaming. So, some studios who are unhappy with their existing infrastructure have built their own chains, such as Sky Mavis with Ronin and Dapper Labs with Flow.
This indicates an unmet need. Web3 games require infrastructure tailored for fast, low-cost transactions. Instead of forcing developers to do these issues themselves, the industry should provide as invisible blockchain as powerful ones. After all, game creators need to focus on building an immersive experience rather than architecting new networks from scratch.
The need for a high-speed blockchain
When blockchain offers high demand use cases such as on-chain trading and gaming, the industry needs a truly scalable, fast network that can match the seamless experience of Web2. Solana’s rapid rise shows demand for fast and inexpensive block space, but the struggle against uptime highlights the challenge of providing scalable speeds without compromising. Even Ethereum’s Layer 2 solutions introduce a unique set of challenges while increasing speed and cost-effectiveness.
The journey is correct, but the clock is ticking. Blockchain infrastructure must evolve quickly enough to provide Web3 promises before Web2 incumbents can absorb its best ideas. Speed is important, but speed alone is not enough. The real goal is not just to match Web2 performance. It’s about building a reliable, open, configurable foundation that Web2 cannot replicate.
Author’s Bio
Tristan Dickinson is Chief Marketing Officer of Exsat Network, the docking layer of Bitcoin. A dynamic and visionary marketing executive, Tristan brings a wealth of experience from the banking, financial services, Web3 and technology sectors.
