Author: Nuffle Labs CEO Altan Tutar, CoinDesk; Translator: Deng Tong, Golden Finance
Over the past year, the crypto industry has attracted exponential growth in users, with monthly active addresses tripling from 70 million in 2023 to more than 220 million in 2024. With more than 300 chains now online, the ecosystem should be able to meet the needs of users. Sustainably attract all types of users. However, in this huge ecosystem, most of the activity and liquidity are locked in multiple Ethereum Layer 2s.
In its current state, Ethereum is reminiscent of Europe in the early 1500s, when Europe experienced breakthroughs such as the printing press and advanced shipbuilding, which enhanced resource management. Today, Ethereum's thriving DeFi ecosystem is equipped with primitives such as lending, staking, and re-staking. However, just as Europe faces challenges with resource scarcity and over-utilization, Ethereum faces obstacles in getting other assets to work in its home (the first layer).
As a result, the current blockchain ecosystem remains frustratingly fragmented. While chain abstraction has become a trend and many projects have made progress, solutions like Intent typically involve orderers that favor large players when filling orders between blockchains, leading to centralization. Furthermore, no additional utility is created for users as most solutions focus on simply exchanging assets.
Despite an impressive technological foundation, we have created an environment where digital assets are constrained rather than empowered. Top blockchains like Ethereum are underutilized and limited by strict architectural boundaries.
To achieve true interoperability by 2025, we must take a step back and rethink blockchain modularity from a whole new perspective.
The Illusion of Modularity
The common metaphor of blockchains as “Lego blocks” oversimplifies the complex technology landscape. Unlike unified building blocks, blockchain components are complex systems with specific dependencies and complex interoperability challenges.
Consider a real-world scenario: It should be simple to transfer assets between different blockchain networks. However, current solutions, such as basic token swaps, offer little functionality. The technology requires a more nuanced, sophisticated approach.
Emerging technologies are changing this narrative. Advances in universal messaging alternatives and transaction finality are creating a more organic, unified ecosystem. The ultimate goal is not just to connect the different pieces, but to create an infrastructure that allows different networks to easily work together.
2025: The Year of Practicality and Accessibility
Looking ahead to 2025, I foresee a two-pronged approach to addressing current and future fragmentation. To attract users and build a sustainable user base, the infrastructure should blend into the background so that users can focus on the application itself without getting bogged down in the technology behind it.
Currently, users are unable to optimally leverage their assets due to complex bridging solutions that prevent them from easily transferring assets across chains. Instead, we need to provide a way for users to maximize their returns while contributing to the ecosystem. This can be achieved by giving token holders the freedom to transfer their assets from one chain to another without bridging through solutions such as re-staking. This is an area of growing interest for users as re-staking expands beyond Ethereum to connect multiple layer 1 and layer 2 networks.
Rather than fragmenting the ecosystem with new, competing blockchains, projects will focus on enhancing and interconnecting existing infrastructure. This approach will breathe new life into currently dormant chains, driving activity and creating real value.
In addition to improvements in the underlying infrastructure, user experience will also take center stage. We will see applications seamlessly integrate blockchain functionality, and users will interact with sophisticated technology without being aware of its complexity. The infrastructure will become invisible — a powerful backend that complements a smooth frontend experience without technical friction.
Creating a Global Marketplace
While 2024 marks widespread acceptance of the industry, as evidenced by increased investment in assets like Bitcoin, true adoption requires an inclusive vision. We should not only build financial instruments, but create a global marketplace where everything is connected, allowing every asset to reach its full potential.
The future of blockchain is not about individual chains fighting for supremacy. It’s about creating a collaborative, fluid infrastructure that empowers users to realize their economic potential by building the future of how money and value work.
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