Crypto Assets ecosystem enters a new phase

Recently, a co-founder of a certain Crypto Assets platform shared his views on the current development status of Crypto Assets at an industry conference. He believes that Crypto Assets have passed the initial stage and are gradually entering their "teenage years". Nevertheless, there is still room for improvement in practical applications, which is mainly constrained by the high transaction fees and complex user interfaces of the past.

Breakthrough Progress in Layer Two Networks

The co-founder pointed out that during previous periods of network congestion, transaction fees on a certain Crypto Assets platform had soared to over $200. He himself had paid over $800 for a single transaction fee to protect his privacy. Today, this situation has become a thing of the past, thanks to the development of Layer 2 network solutions. Layer 2 networks effectively reduce mainnet costs and improve scalability by transferring some transactions to auxiliary blockchains.

Despite the view that the development of layer two networks may weaken the mainnet, the founder believes that the low transaction fees achieved by layer two networks are an important milestone for the entire ecosystem, as they address the main barrier to mass adoption. Currently, several layer two network projects have reduced transaction fees to below $0.1, which not only makes transactions more secure but also makes them affordable for ordinary users.

Balancing Decentralization and Mainstream Demand

In addition to reducing transaction costs, the platform has also made significant progress in transaction speed. Through technological upgrades, the platform has halved the block generation time, reducing transaction wait times to between 5 and 15 seconds. On the second layer network, transaction times have even dropped to about 1 second.

However, the Crypto Assets industry still faces the challenge of how to meet user needs while maintaining decentralization. The founder recently called for layer two networks to improve their degree of decentralization, believing that layer two networks should inherit the security of their underlying layer. Starting in 2025, he will only publicly acknowledge layer two networks that meet certain standards of decentralization, which require at least 75% consensus from the council to change system rules, and at least 26% of council members should be independent of the core team.

Revolution in User Experience and Future Development Directions

The founder emphasized the advancements in account abstraction technology and the "user experience revolution" it brings. He pointed out that the reason mainstream society does not use Crypto Assets is not due to technical limitations, but rather issues with the user experience. Blockchain technology has already empowered the internet, creating a robust and durable digital structure.

Now, users can create smart contract wallets that can only send transactions after proving control of a specific email address. This effectively brings the social recovery feature of Web2 into the world of Web3. He also mentioned the necessity of enhancing wallet security, particularly against the threats posed by centralized participants. Compared to extreme self-sovereign wallets or traditional options that rely on third parties, he believes that multi-signature smart wallets provide a better balance.

Looking ahead, the founder predicts that the Crypto Assets ecosystem will evolve towards social networks, payment systems, privacy protection, zero-knowledge proofs, and human verification technology, while also balancing decentralization and practicality. As this "teenage" protocol matures, we look forward to seeing it bring more innovations and breakthroughs in the future.