Speed isn’t just a challenge for blockchain – it’s the deciding factor between adoption and obsolescence. If Web3 can’t match the seamless experience users expect, it won’t matter how decentralized or innovative it is.
The current state of development speaks volumes: according to a16z’s Builder Energy Dashboard, which tracks where crypto’s builders are focusing their efforts, infrastructure development accounts for around one-fifth of activity, with Layer 1 and Layer 2 projects making up over a third of that segment. Given that most of these projects are focused on delivering high transaction speeds without corresponding high fees, it’s clear that scalability and processing times remain a major constraint on the industry.
However, blockchain scalability must not become the only lens through which we evaluate transaction speeds. Achieving the highest transactions per second isn’t an end in itself – it’s a means to a better user experience. In the areas where Web3 is gaining the most traction – namely trading and gaming – fast settlement isn’t a luxury; it’s a requirement for competing with Web2 incumbents.
Trading Up to DeFi
Demand for on-chain trading is surging. According to a16z’s annual State of Crypto report, decentralized exchanges (DEXs) now handle 10% of total spot crypto trading – a dramatic shift from just four years ago when centralized exchanges (CEXs) dominated 100% of the market.
Meanwhile, total value locked (TVL) in DeFi has climbed back above $100 billion for the first time since 2021, and analysts project continued expansion, with DeFi expected to grow at a 45% CAGR through 2032. The market is increasingly recognizing the advantages of on-chain, transparent, peer-to-peer trading over the black-box opacity of centralized systems.
But Web3 isn’t competing in a vacuum – legacy finance isn’t standing still. If on-chain trading platforms want to pull users away from TradFi, they need to offer speed, seamless UX, and reliability on par with platforms like Robinhood or Fidelity. The reality is that blockchain will never match TradFi’s centralized servers in raw speed – physics, latency, and decentralization make that impossible. But that’s not where Web3 wins. Its edge isn’t measured in milliseconds; it’s measured in trustlessness, finality, and programmable finance—things legacy systems simply can’t offer.
The real battle isn’t just about execution speed; it’s about how much trust, efficiency, and flexibility Web3 can inject into the financial stack. On-chain trading isn’t about making TradFi obsolete—it’s about building a financial system where finality is instant, markets are open, and speed serves trust, not intermediaries.
Game Studios Building It for Themselves
While gaming has seen flashes of mainstream interest, from Axie Infinity’s early surge to NBA Top Shot’s collectibles boom, long-term adoption remains elusive. This year, Ton has emerged as a hub for blockchain-based gaming, with viral hits like Hamster Kombat, Notion, and Catizen. These trends suggest that blockchain can add new layers of ownership and economic incentives to gaming – but viral success doesn’t equal sustainability.
The real opportunity lies in instant asset settlement, true player ownership, and permissionless economies, but only if blockchain tech can operate at speeds indistinguishable from traditional game servers. If transaction delays or high fees create friction, Web3 gaming risks being a novelty rather than a revolution – a niche experiment instead of a fundamental shift in the industry.
Unlike DeFi and on-chain trading, which have seen institutional backing, blockchain gaming is still in its experimental phase. Developers face a different set of challenges: while traders may tolerate some transaction costs, gamers won’t. If fees and latency interrupt gameplay, blockchain titles simply can’t compete with the seamless experience of traditional games. That’s why some studios, frustrated with existing infrastructure, have built their own chains – like Sky Mavis with Ronin or Dapper Labs with Flow.
This signals an unmet need: Web3 gaming requires infrastructure tailored for high-speed, low-cost transactions at scale. Instead of forcing developers to solve these problems themselves, the industry must deliver blockchains that are as invisible as they are powerful. After all, game creators should be focused on building immersive experiences, not architecting new networks from scratch.
The Need for High-Speed Blockchains
If blockchain is ever to deliver on high-demand use cases such as on-chain trading and gaming, the industry needs truly scalable, high-speed networks capable of matching Web2’s seamless experience. Solana’s rapid rise illustrates the demand for fast, cheap block space, but its struggles with uptime highlight the challenge of delivering scalable speed without compromise. Even Ethereum’s Layer 2 solutions, while improving speed and cost efficiency, introduce their own set of challenges – chief among them interoperability and fragmentation.
The direction of travel is right, but the clock is ticking. Blockchain infrastructure must evolve fast enough to deliver on Web3’s promises before Web2 incumbents absorb its best ideas. Speed is critical, but speed alone isn’t enough. The real goal isn’t just to match Web2’s performance – it’s to build a trustless, open, and composable foundation that Web2 can’t replicate.
Author bio
Tristan Dickinson is the Chief Marketing Officer at exSat Network, a docking layer for Bitcoin. A dynamic and visionary marketing executive, Tristan brings a wealth of experience from the banking, financial services, Web3, and technology sectors.
