From: thepipeline_xyz
The pipeline podcast hosted Brandon Milman, CEO and co-founder at Phantom, Brian Freel, Head of Ecosystem Success at Phantom, and Keone Han, CEO and co-founder at Monad Labs, to discuss the importance of technology and scalability in blockchain ecosystems [00:00:00]. This discussion followed a major announcement that Phantom will support Monad from day one [00:00:33].
Phantom’s Strategic Approach to Chain Support
Phantom’s decision-making process for supporting new chains is heavily influenced by technology [00:03:04]. The company believes the blockchain world will be multi-chain, with perhaps two to five dominant ecosystems [00:02:32]. Their role is to identify the chains poised to emerge as winners, with technology being the most crucial underlying tenet [00:03:02].
The immediate need for scalable technology is paramount, as Phantom is experiencing a massive influx of users who require solutions today [00:03:09]. This focus on scalability reminds Brandon Milman of Solana’s pragmatic approach to the market, which prioritized innovation in consensus and parallel execution [00:03:31].
Monad’s Technological Innovations
Monad’s approach to technology and its EVM compatibility are key factors for Phantom’s support [00:03:56]. Monad’s innovations in consensus and parallel execution allow it to offer fast and cheap transactions, marrying the user base’s need for efficiency with the robust existing EVM ecosystem [00:04:00].
Monad aims to provide the best of both worlds between performance and decentralization [00:27:52]. Keone Han explained that achieving high performance requires significant software changes, new architecture, and low-level optimization to address bottlenecks in a highly decentralized system [00:28:23]. The goal is to always move “up and to the right” on a graph of performance versus decentralization, utilizing novel architecture and software improvements [00:29:20].
Layer 1 vs. Layer 2
Monad’s decision to launch as a Layer 1 (L1) rather than a Layer 2 (L2) was driven by three major reasons: decentralization, performance, and cost for end-users [00:27:40]. Keone Han emphasized that decentralization in this context means decentralized control of block production, avoiding a single sequencer, and enforcing censorship resistance [00:29:36]. Given the current state of L2s, Monad didn’t see the same level of decentralization without significant compromises [00:29:52]. Therefore, building as an L1 was crucial to push the envelope of what’s possible in both performance and decentralization [00:30:03].
User Experience and Future Use Cases
Phantom views itself as the front end for crypto, aiming to boil down and present the best of the crypto world that emerges from its open, permissionless arena [00:19:53]. A key aspect of wallet user experience is to enable the discovery and navigation of the ecosystem in a safe and easy way, especially as the proliferation of content like tokens, NFTs, and dApps continues [00:15:39].
The breakthroughs in underlying technology, making systems more scalable, are enabling new use cases [00:15:22].
Novel Applications and Payments
- WeChat Analogy: Keone Han envisions the future of crypto as similar to WeChat, an immersive environment where users can chat, order food, hire services, and apply for jobs, all embedded within a single application [00:18:02]. A wallet, combined with blockchain’s shared global state and composability, has the best chance of enacting this vision [00:18:31].
- Payments: Brandon Milman is bullish on crypto payments, particularly with Stripe’s recent announcement enabling any merchant to accept crypto [00:20:25]. This could change the market structure by making crypto a cheaper alternative to credit card payments for retail stores [00:21:24].
- Creator Monetization: Brian Freel highlighted Drip House in the Solana ecosystem as an example of how scalable systems like Monad or Solana can enable new approaches to creator monetization, moving beyond scarce NFTs to relationships with creators and micro-payments [00:21:49].
Multi-chain Connectivity and Bridging
Connectivity with other ecosystems is crucial for new players like Monad in the EVM space [00:30:32]. Phantom plans to embed bridges directly into the wallet to enable seamless movement of funds between chains [00:31:02]. These “generalized bridges” allow swapping assets across different blockchains, a functionality Phantom aims to integrate directly into its swap features [00:31:15].
Bridging is seen as a fundamental cornerstone for ecosystems, as liquidity is the lifeblood of financial activity [00:32:36]. Phantom has experience with bridging fungible tokens and NFTs, having worked with teams like DeGods [00:33:02]. Wallet-integrated bridges are a significant unlock, simplifying the often tedious transaction confirmations for users [00:33:57].
The Role of Community in Growth and Adoption
Phantom’s success, including its rise to number one on the US Google Play Store for finance apps, is attributed to prioritizing community and focusing on user experience [00:09:54]. Phantom’s initial strategy involved planting a flag in a new ecosystem (Solana) where there was less noise and fewer established competitors, becoming a cornerstone of the Solana user experience [00:40:04].
This decision was a “contrarian bet” at a time when EVM dominance was assumed [00:41:37]. The Solana ecosystem’s shared experience of building a new chain from the ground up fostered a genuine “kernel of culture” and community [00:41:45]. Phantom learned to stay close to this core, genuine community, even during challenging times like the FTX collapse [00:43:58]. This focus on community and understanding user needs has been the biggest driver of Phantom’s success, and they see Monad embodying a similar spirit [00:44:47].
“The projects that innately understand that seem to have this massive advantage on the go to market side of things” [00:48:11].
Final Alpha
- Listen to Users: If building a product, find your core users, understand their needs (“jobs to be done”), listen to raw feedback, and adjust priorities based on their input [00:50:20].
- Assume Crypto Dominance: Mentally internalize that crypto will take over the world [00:51:56]. Then, consider how this certainty would change your behavior and how you can add value to the space [00:52:32]. Start small and be consistent, as results compound quickly [00:52:58].
- Avoid Tribalism: Engaging in frivolous tribalism in crypto is counterproductive and a zero-sum mindset [00:54:26]. Instead, focus efforts on growing the pie for billions of users and give new entrants a welcoming impression [00:54:43]. Removing preconceived notions and biases opens up many opportunities [00:55:29].