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Over the past decade, the concept of “web3” has evolved from a mere idea to a thriving digital realm. Cryptocurrency has become a trillion-dollar industry, NFTs have revolutionized the art market, and blockchain-based financial services have become commonplace.
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It is thanks to the visionaries and developers who have created solutions that have reshaped the digital landscape. The web3 ecosystem now boasts thousands of decentralized applications (dApps) and a wide range of decentralized finance (DeFi) services.
However, the question remains: could the same creativity that built web3 also be its downfall?
In theory, the rapid innovation in web3 should lead to increased user adoption. As the ecosystem diversifies, it becomes more appealing to users. Despite this, the current rates of user adoption do not align with web3’s potential value proposition.
One major issue is the fragmentation of blockchains. According to a report, there are over 1,000 active blockchains as of January 2024. The Ethereum ecosystem alone has over 50 Layer 2 solutions, with more expected to launch soon, creating competition for users and liquidity.
This fragmentation significantly impacts user experience. Users often have to switch between different networks within their wallets, leading to confusion and potential errors. The proliferation of Layer 2 and Layer 3 chains requires users to keep various assets and gas tokens in their wallets to access applications on different chains, each with its own set of rules and fees.
Given these challenges, it is not surprising that mainstream users have been hesitant to embrace web3. To drive widespread adoption among mainstream users, a more seamless and intuitive user experience is essential.
One solution could be to encourage developers to enhance cross-chain compatibility and interoperability. However, expecting individual developers to achieve global interoperability is unrealistic given the scale of the challenge.
Currently, there are thousands of active blockchains in the web3 ecosystem, with projections for exponential growth. Developers are forced to deploy their applications on multiple chains to attract users and liquidity, diverting their focus from core innovation to managing cross-chain compatibility.
To address these challenges and allow developers to focus on innovation, chain abstraction is proposed as a solution.
Imagine a world where the complexities of different chains are abstracted away, allowing developers to build applications on their preferred chain and attract users seamlessly across all chains. Users would not need to worry about chain compatibility or which chain an application is built on.
Building an abstracted web3 ecosystem requires unifying user balances across all chains and simplifying cross-chain accessibility for developers.
While achieving chain abstraction will take time, it is essential to start the journey today to unlock mainstream adoption. It is crucial to support the vision of web3 architects and innovators by prioritizing abstraction and enhancing user experience.
Learn more: The importance of chain abstraction in web3 for mainstream adoption | Opinion
Mayur Relekar
Mayur Relekar is the co-founder of Arcana. With a background as the former Chief Products Officer at Wow Labz, Mayur co-founded Arcana to simplify blockchain complexities and improve user experience. The company is supported by top industry funds and investors, including Balaji Srinivasan, Polygon Ventures, Republic Crypto, and Woodstock Fund.