From: thepipeline_xyz
The advancement of blockchain technology, particularly in achieving high performance, is poised to significantly impact various on-chain verticals such as DeFi, NFTs, gaming, and social applications [00:30:00].
Key Advancements and Their Impact
Transaction Speed (TPS)
One of the most notable impacts of high-performance blockchain technology is the drastic increase in transactions per second (TPS). The prospect of being able to get liquidated at 10,000 TPS, rather than a mere 10 to 1,000 TPS, highlights the shift in processing capability [00:31:15].
Enhanced User Experience
High performance enables a more frictionless user experience (UX) when interacting with the chain [00:31:36]. This is particularly exciting for areas like gaming, where real-time interactions and trading of NFTs can become a seamless part of the experience [00:31:43].
Central Limit Order Books (CLOBs)
A significant differentiator enabled by high-performance blockchain technology is the practical implementation of Central Limit Order Books (CLOBs) on-chain [00:32:45].
Currently, the majority of on-chain crypto trading is conducted through Automated Market Makers (AMMs) [00:33:28]. This is primarily due to high gas fees, which make it unprofitable for market makers to provide liquidity on-chain [00:33:30]. However, with sufficiently low fees and high TPS, market makers can profitably provide on-chain liquidity [00:33:44]. This shift leads to much deeper liquidity and significantly better execution for traders [00:33:57].
The transition to 10,000 TPS represents a massive jump that enables new use cases which can only exist within this high-performance execution environment [00:34:11]. Once users experience this level of performance, they are unlikely to revert to older systems [00:34:20].