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Home»Blockchain»Blockchain speed as the key to unlocking next-generation applications
Blockchain

Blockchain speed as the key to unlocking next-generation applications

December 19, 2024No Comments4 Mins Read
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Complex applications such as decentralized derivatives, options trading, and the latest AI tools and yield farming protocols have many benefits, such as greater user control over assets and participation in the governance, but they require a certain level of underlying infrastructure. The application of NFTs beyond digital art and collectibles has grown, as has the popularity of tokenizing physical assets such as real estate and art.

Blockchains offer exciting new applications like tokenized uranium. The integration between blockchain and the Internet of Things (IoT) has given rise to intelligent applications, improving data reliability in smart cities, logistics and industrial automation. The 2025 growth cycle could see wider adoption of Web3 powered by consumer applications developed in highly scalable environments and distributed to larger numbers of users. The main enablers of these developments are more crypto-friendly regulations and, to a greater extent, advanced blockchain infrastructure.

Blockchain speed is a key factor in terms of supporting the latest applications. Factors such as block size, network congestion, fees, and block duration all play a role in transaction speed. Cronos emerges as one of the fastest blockchains after launching its EVM v1.4.0 Pallene upgrade, which supports up to 60,000 transactions per second (TPS) and 600x increase in transaction execution via Block-STM technology. This milestone positions Cronos as a highly suitable host of next-generation applications, including Web3 gaming, DeFi, and AI-based tools. The channel has almost caught up with Solana, which theoretically supports 65,000 TPS.

Sonic, formerly Fantom, is one of the top 20 fastest blockchains, reaching over 1,400 real-time TPS. In comparison, Solana hits 1,220 TPS. Sonic is an EVM-enabled L1 blockchain with attractive developer incentives and robust infrastructure. Its maximum speed is 10,000 TPS in one second. The cutting-edge consensus mechanism and focus on developer experience has made it a popular choice for dApps, especially DeFi protocols. Sonic’s low latency, coupled with its ability to handle high transaction volume, makes it ideal for tokenizing real-world assets. To this end, the chain recently facilitated a key partnership with Backed, Chainlink and Fortlake Asset Management to tokenize Fortlake’s Sigma Opportunities Fund, bringing traditional assets on-chain. Sigma Fund is the first to adopt a tokenization platform as a service.

Next-generation applications, including gaming platforms, social networks and financial services, require fast and fluid interactions. Long transaction times frustrate users and hinder adoption. Newer applications demand real-time or near-real-time performance, and slow block times can make them impractical.

As more users are onboarded to Web3, the number of transactions increases accordingly and high speeds ensure that networks can handle the resulting traffic without congestion. Millions of microtransactions and asset transfers occur in real time, requiring rapid blockchain support.

Decentralized autonomous organizations, IoT integrations, and multi-chain ecosystems rely on rapid processing to efficiently coordinate complex operations. Faster execution of smart contracts is essential for decentralized exchanges, automated market makers and lending platforms to provide competitive and reliable services.

By processing more transactions per second, fast blockchains reduce competition among users for limited block space. This results in lower transaction fees, making the platform more attractive to users and developers. Finally, speed supports seamless interactions between blockchains, enabling advanced use cases such as new iterations of cross-chain DeFi.

Blockchains enable many unexpected use cases, and high speeds are a key advantage. For example, Ujo Music turned to blockchain to ensure fair compensation for musicians, while Siemens partnered with the Brooklyn Microgrid app to allow Brooklyn residents with solar panels to transfer their energy to their neighbors . In a major step in tokenizing real-world assets, ultra-fast blockchain Tezos has introduced Uranium.io, the first blockchain-based dApp for uranium trading, which aims to reduce barriers at the entrance for investors. The platform will partner with Archax, the UK’s first registered cryptocurrency exchange, and Curzon Uranium, a leading uranium trading company with trading volume exceeding $1 billion. Uranium.io presents new opportunities for retail investors. Until now, only institutional investors with significant capital have been able to trade uranium, and retail access to the naturally occurring radioactive element was possible exclusively through exchange-traded funds. This development is driven by a growing demand for nuclear energy as a low-emissions alternative to powering AI protocols.

Tezos is at the forefront of blockchain research, with recent upgrades focused on scaling solutions such as Smart Rollups, which have enabled theoretical speeds of up to one million TPS. With the advent of next-generation applications, this inspiring development offers hope that the limit to blockchain speeds will only be imagination.



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