The Pipeline Knowledge Graph

high performance blockchains

6 min read

From: thepipeline_xyz

High-performance blockchain technology aims to address critical limitations of earlier blockchain designs, particularly the “slow, clunky, broken” nature of previous Virtual Machines (VMs) like the generic EVM [01:13:00]. The core objective is to create systems that can handle large user bases and complex applications without prohibitive costs or performance bottlenecks [02:09:00].

Key Value Propositions of High Performance Blockchains

The primary value proposition of a high-performance blockchain is its ability to handle a billion users, a goal many projects aim for [02:10:00]. Current EVM-based systems struggle with even 50,000 users, leading to extremely high gas fees and unusability, often followed by hacks [02:26:00]. Next-generation blockchain scalability and high-performance systems are designed to:

  • Handle Demand: Capable of supporting the widespread demand anticipated if everyone were on-chain [02:47:00].
  • Support Mass Adoption: Allow for the onboarding of significantly more users [08:13:00].
  • Enable Complex Applications: Provide the necessary scale for ambitious “Pie in the Sky” ideas to become reality [08:24:00].

Current infrastructure is not yet ready for applications, as seen when high volumes on platforms like GMX cause Arbitrum gas fees to skyrocket, making the system unusable [09:34:00]. This inconsistency in gas fees can wreck trading strategies for average users [09:52:00].

Movement Labs’ Approach to High Performance

Movement Labs is building the first network of Move-based blockchains [01:37:00]. Their architecture is a “weird mashup” of different technologies [05:55:00]:

  • Move Virtual Machine (MoveVM): The execution environment is the MoveVM, originally developed by Facebook’s Diem project (with over a billion dollars in research) and adopted by Aptos and Sui [01:24:00] [03:41:00].
  • Ethereum Layer 2 (L2): Movement Labs’ M2 is the first Move rollup on Ethereum, leveraging Ethereum’s security and liquidity [01:40:00] [03:56:00].
  • Celestia for Data Availability (DA): To overcome the data availability bottleneck seen in traditional rollups like Arbitrum or Optimism, Movement partners with Celestia for DA, achieving performance akin to Layer 1s with extremely low gas fees [04:05:00].
  • Snow Consensus: For its decentralized sequencer set, Movement utilizes Snow Consensus, which has low hardware requirements, is highly decentralized, and offers instant finality [04:48:00]. This system incentivizes validators through staking the native token (“move”) to secure the network and maintain uptime [05:27:00].
  • Fractal Transpiler (EVM Compatibility): To drive adoption, Movement built “Fractal,” a transpiler that allows any Solidity code (EVM opcodes) to be mapped to Move opcodes and launched on the MoveVM [02:39:00]. While not 100% the same as writing in Move, it inherits the MoveVM’s formal verification methods, significantly enhancing security [02:51:00]. The goal is for the experience to feel, work, and look like an EVM, but with the MoveVM underneath [02:47:00].

Monad’s High-Performance Blockchain Features

Monad’s high-performance blockchain features focus on making the EVM fast while adhering to first engineering principles [02:51:00].

  • EVM Optimization: Monad aims to make the actual EVM fast by changing underlying components like the database and consensus mechanism [02:07:00].
  • Layer 1 (L1) Architecture: To provide a viable, full package solution, Monad operates as an L1, allowing deep-seated changes to the system [02:33:00].
  • Developer Focus: Monad aims to be the choice for EVM developers, while Solana attracts SVM developers [02:49:00]. This strategy is seen as market expansion rather than direct competition [03:13:00].
  • Security Improvements: Blockchain performance optimization can indirectly improve security by reducing development costs, allowing developers to implement more checks without compromising on gas optimization [03:38:00]. As an L1, Monad can also add special, low-level instructions to the VM (e.g., marking contracts as non-reentrant) to directly address common security concerns like re-entrancy attacks [03:45:00].

Pressing Issues and Solutions in Crypto

The most pressing issue in crypto, beyond gaining more users, is the inadequacy of today’s infrastructure, especially execution layers [06:51:00].

  • Developer Experience: While Solana has performed well, it’s difficult to get builders to write in Rust due to the financial disincentive and the dominance of Solidity/EVM for volume and Total Value Locked (TVL) [07:03:00]. Projects like Movement and Monad allow Solidity developers to bring their code to next-generation networks without hiring new teams or learning new, untested programming languages [07:29:00].
  • Scalability: The current infrastructure cannot handle a Facebook-level user base; every blockchain would fail [11:04:00]. Projects are now reaching a “line of sight” on solutions, indicating that while not fully there, the path to massive blockchain scalability and high-performance systems is becoming clearer [11:17:00].
  • Inconsistent Gas Fees: Parallelized runtimes and localized fee markets are crucial to guarantee a consistent user experience, as sudden jumps in gas fees can make applications unusable for average users [10:10:00].

Collaboration vs. Competition

Historically, the blockchain space has been characterized by rigid competition and “Twitter Wars” between different Layer 1s, Data Availability (DA) layers, and settlement layers [15:05:00]. However, there’s a growing sentiment for collaboration, particularly among execution layer projects [15:00:00].

  • Shared Goal: Different VMs (Monad VM, Move VM, Solana VM) are seen as interesting pieces of technology, designed for specific use cases, and built on genuine research [15:35:00]. The common consensus is that the old EVM is problematic [16:14:00].
  • Moving the Space Forward: The industry is recognizing that fighting between ecosystems (e.g., Ethereum vs. Solana) has not been beneficial [16:41:00]. Collaboration, learning from each other, and contributing back to the broader ecosystem (e.g., Monad considering EIPs for Ethereum) is seen as a more productive approach [17:11:00].
  • Growing the Pie: The goal is to “grow the pie” of overall blockchain adoption and use cases, rather than fighting over existing market share [32:27:00]. Developers should have the choice of where to build, and unique value propositions will attract them [32:49:00].

Ready for Applications

The infrastructure is perceived as “99% there,” with significant investments resolving previous issues like expensive DA (Celestia) and inefficient VMs [20:05:00]. While not ready for a “Facebook-level” user base today, there is a clear “line of sight” on solutions [21:30:00].

Potential Use Cases

  • Payments: Cross-border payments are ripe for disruption due to high costs and complexities in traditional systems [35:57:00]. Advancements in account abstraction and wallet experiences, combined with high-throughput blockchains, can enable seamless, low-cost global transactions [36:33:00].
  • Retail Trading: Performance needs in decentralized finance include retail trading, where on-chain order books with reasonable slippages and market maker profitability are becoming feasible [37:19:00]. High-frequency trading may still be an iteration or cycle away [37:23:00].
  • Gaming: While previous attempts were hampered by being “Ponzi games” focused on financial speculation rather than fun [40:30:00], modern performance needs in decentralized finance allow for building good games that use blockchain for asset and state tracking, rather than running the entire game engine on-chain [37:48:00]. The primary bottleneck is creating a genuinely fun game first, then integrating blockchain components like NFTs for digital ownership [38:21:00].

Unique Database Optimizations

Unique database optimizations in blockchains are crucial for high-performance systems. The challenge is often the challenges of standard databases in blockchain performance because they are not designed for the specific needs of blockchain’s transactional model.

Future Outlook

There is growing excitement over the breakdown of “tribalism” in crypto, with core Ethereum developers acknowledging other VMs and DA layers [41:52:00]. This shift towards a more cohesive community that works together on technology is viewed positively [42:30:00]. The focus is shifting from infrastructure building to unlocking actual application use cases [21:12:00]. Innovations like Friend.tech, despite their flaws, have inspired new ideas for social applications beyond traditional finance or gaming [42:47:00].

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