The Barrier to Web3 Growth

By jer979!! | | 13 Sep 2022

As of today, the market cap of all of crypto is $1 trillion and DeFi is under $40 billion.

That’s nowhere near the potential for what the industry can, should, and will be.

The question then, is what is holding it back?

At Radix, we’ve been thinking about this a lot and I think we’ve been circling around the answer.

What I think we do have right is that it’s not a piecemeal approach to fixing different parts of the stack, e.g. slightly more Transactions per Second, a slightly faster execution engine, or a slightly easier development environment, or even a slightly better wallet/user experience.

These are all nice, but it’s like improving the fuel injectors without upgrading the engine or doing those, but not addressing the need to upgrade the brake response team to accommodate the faster accelerations.

Our answer has been “it’s the developer experience” and, in many respects, we’re right about that, but I am starting to think that’s just a part of the whole, namely the biggest barrier is the speed of safe DeFi innovation (or DeFinnovation if I’m trying to be cute about it).

The number of inputs to rapid safe DeFi innovation is large. It involves a platform that can scale without limits, an execution engine which protects developers and users from unnecessary or illogical outcomes, a programming language that removes burden from coders to pre-determine all of the logic for an application, and a wallet that makes it intuitive for users to accomplish their desired task, the so-called “Job to be done.”

Only with a holistic, comprehensive approach to the problem of how to rapidly develop secure DeFi can we have the hundreds of thousands of dApp experiments that will, eventually, help DeFi bust through the wall that currently constrains it.

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