A few things I've come to better understand recently.

1. It's mathematically infeasible to scale Ethereum to accommodate millions of users within the next couple of years. Despite the introduction of rollups, the Ethereum base layer in its current form lacks the capacity for hyper-growth. This is an unfortunate but unavoidable truth.

2. Bridges possess a major design flaw, namely explicit Beacon and Receiver bindings. To establish a scalable blockchain network, that can handle hundreds of interconnected L1/L2 execution environments and support an Open Finance network designed for millions of users, the only viable option is to employ cross-chain storage proofs using SNARKs. Utilizing SNARKs, relayers can quickly and securely verify transactions without the need for explicit interchain bindings, resulting in a more efficient and reliable network. But we’re not there yet.

3. Despite initial enthusiasm for decentralized finance (DeFi), in its current form, has failed to live up to its promise of banking the unbanked. Instead, we are building complex financial instruments, but for whom? The proliferation of non-sensical governance tokens across many DeFi/CeFi protocols has created additional challenges for the ecosystem. Failure to work from first principles has hampered progress and a fundamental shift is needed if DeFi is to realize its potential as a tool for financial inclusion.

To move the needle forward we need to go back to the drawing boards.

We need asynchronous protocol construction, distributed circuit-breaker systems, and virtualized fiat (money by decree of network) if we expect to match the sophistication and scale of the current, albeit failing, financial system.

It can be done. But it will take time.

What we need right now is to evolve the culture of the Ethereum network state. We need to build networks, connect, and reshape our relationship with decentralized and distributed technology.

Blockchains cannot currently scale to millions of users, but decentralized identity can.

On the horizon is a revolution in identity and social networks.

The advertising models of yesteryear are failing, and big tech is scrambling. The writing is on the wall, as seen with Twitter, Facebook, Google, and Microsoft. Subscription fees for verified digital identities. Artificial intelligence making search an obsolete mode of interacting with the Internet. The walled gardens of the Web2 era are becoming relics, and the walls are starting to crumble.

We have an opportunity to reimagine and rebuild the internet.

How will technology serve us for generations to come? The world is changing, and "decentralization" is no longer just a buzzword. It is a necessity.

To achieve a decentralized future, we must focus on building strong communities and networks built on trust, transparency, and collaboration. We need to create an ecosystem that welcomes new users and developers, encourages experimentation and innovation, and creates the foundation for an Open Finance revolution.

Decentralized identity is a key component of this future.

It’s how we scale all of Web3 - onboarding millions users and hundreds of thousands of developers into the decentralized and distributed future.

◎

A few things I've come to better understand recently.

1. It's mathematically infeasible to scale Ethereum to accommodate millions of users within the next couple of years. Despite the introduction of rollups, the Ethereum base layer in its current form lacks the capacity for hyper-growth. This is an unfortunate but unavoidable truth.

2. Bridges possess a major design flaw, namely explicit Beacon and Receiver bindings. To establish a scalable blockchain network, that can handle hundreds of interconnected L1/L2 execution environments and support an Open Finance network designed for millions of users, the only viable option is to employ cross-chain storage proofs using SNARKs. Utilizing SNARKs, relayers can quickly and securely verify transactions without the need for explicit interchain bindings, resulting in a more efficient and reliable network. But we’re not there yet.

3. Despite initial enthusiasm for decentralized finance (DeFi), in its current form, has failed to live up to its promise of banking the unbanked. Instead, we are building complex financial instruments, but for whom? The proliferation of non-sensical governance tokens across many DeFi/CeFi protocols has created additional challenges for the ecosystem. Failure to work from first principles has hampered progress and a fundamental shift is needed if DeFi is to realize its potential as a tool for financial inclusion.

To move the needle forward we need to go back to the drawing boards.

We need asynchronous protocol construction, distributed circuit-breaker systems, and virtualized fiat (money by decree of network) if we expect to match the sophistication and scale of the current, albeit failing, financial system.

It can be done. But it will take time.

What we need right now is to evolve the culture of the Ethereum network state. We need to build networks, connect, and reshape our relationship with decentralized and distributed technology.

Blockchains cannot currently scale to millions of users, but decentralized identity can.

On the horizon is a revolution in identity and social networks.

The advertising models of yesteryear are failing, and big tech is scrambling. The writing is on the wall, as seen with Twitter, Facebook, Google, and Microsoft. Subscription fees for verified digital identities. Artificial intelligence making search an obsolete mode of interacting with the Internet. The walled gardens of the Web2 era are becoming relics, and the walls are starting to crumble.

We have an opportunity to reimagine and rebuild the internet.

How will technology serve us for generations to come? The world is changing, and "decentralization" is no longer just a buzzword. It is a necessity.

To achieve a decentralized future, we must focus on building strong communities and networks built on trust, transparency, and collaboration. We need to create an ecosystem that welcomes new users and developers, encourages experimentation and innovation, and creates the foundation for an Open Finance revolution.

Decentralized identity is a key component of this future.

It’s how we scale all of Web3 - onboarding millions users and hundreds of thousands of developers into the decentralized and distributed future.

◎