Theme 9: Blockchain Scalability in 2022

2022 Snapshots Theme 9: Blockchain Scalability in 2022

▪ Decentralized infrastructure becomes more robust, with more efficient chains and interoperable solutions driving new use cases in NFT, DeFi, GameFi etc.

▪ Projects and funds flow to those solutions that enhance the scalability and interoperability of blockchain networks.

▪ Improvements in efficiency and security of scaling and cross-chain solutions help projects reach their full potential.

75bn

Chainlink total value locked (US$, Nov 21)

125

Ethereum gas fee (gwei)

5.2

BSC gas fee (gwei)

24.9bn

Polkadot market cap (US$)

Core thesis

Scalability has become the holy grail of the digital assets industry. The ever-increasing number of blockchain networks emphasized the need for cost-efficient transfers.

Significance and Disruptive Impacts

The Blockchain Trilemma has been a hurdle to prevent projects, or more broadly, the decentralized economy from reaching its full potential and broad adoption. 2022 will see how far developers can go to keep a blockchain as decentralized, scalable and secure as possible. Resources (in the form of developer efforts and investments) have supported projects that position themselves as potential solutions.

Expectation for 2022

1. Decentralized infrastructure becomes more robust Decentralized infrastructure is the backbone of the decentralized economy. More efficient chains and interoperability between different blockchain networks will drive new use cases in DeFi, GameFi, NFTs, etc. (See Interview with Kevin Loo, New Vision)

2. Scaling solutions achieve great progress in 2022 Scaling solutions (modular over monolithic) have shown more progress than expected in 2021 (See Interview with Annabelle Huang, Amber Groupand Interview with Alex Kent, TPS Capital).

3. Projects add layer-2 solutions Projects across the spectrum will add layer-2 solutions to lower gas fees and achieve their full potential. (See Interview with Sébastien Borget, The Sandbox and Interview with Alex Kent, TPS Capital).