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Home»TRADING NEWS»Microsoft’s top engineer predicts blockchain’s vertical expansion: Which industries will lead the way?
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Microsoft’s top engineer predicts blockchain’s vertical expansion: Which industries will lead the way?

By Crypto FlexsAugust 2, 20243 Mins Read
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Microsoft’s top engineer predicts blockchain’s vertical expansion: Which industries will lead the way?
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  • Chris Lee predicts that blockchain will soon shift from horizontal scaling to vertical scaling.
  • Vertical expansion can increase the efficiency of online casinos and improve the user experience.
  • Advanced solutions like atomic swaps can replace wrapped assets while maintaining decentralization.

Chris Lee, a former Microsoft engineer and founder and CTO of Ava Protocol, makes a bold prediction about the future of blockchain technology.

According to Lee, the focus of blockchain development is expected to shift from horizontal to vertical expansion in the next five years. This shift is expected to redefine how various industries utilize blockchain technology, especially in terms of efficiency, user experience, and decentralization.

Horizontal scaling solutions have reached saturation.

Horizontal scaling, which involves increasing the number of nodes or expanding network capacity, has been a primary way to improve blockchain performance. However, Li suggests that this approach has reached its limits.

The saturation of horizontal scaling solutions such as zk-rollups, Ethereum’s layer 2 solutions, indicates an urgent need for new strategies.

Vertical scaling, on the other hand, aims to improve the capacity of individual transactions while maintaining decentralization, making them faster and more cost-effective.

Online games are expected to benefit significantly from vertical expansion

One industry that could benefit significantly from vertical expansion is online gaming in particular. Online Casino.

Integrating blockchain technology into online casinos has already proven promising in terms of transparency, security, and fair competition.

Vertical expansion can further innovate this sector by enabling more complex transactions and interactions within the gaming platform. Enhanced smart wallets and multi-signature solutions can streamline the user experience, making it easier for players to manage their assets and engage in secure and instant transactions.

Li emphasized the limitations. Wrapped Digital AssetsWhile it is useful for connecting assets across different blockchains, it brings back the risks of centralization and trust dependency.

For online casinos, this means that the current reliance on custodians to manage assets could be replaced by more decentralized solutions, such as atomic swaps or cross-chain bridges.

These technologies promise to preserve the decentralized spirit of blockchain while enhancing functionality and security.

Balance between security, scalability, and decentralization

Vertical scaling can also help you address: Blockchain Trilemma — Balancing security, scalability, and decentralization.

Vertical scaling can provide industries like online casinos with robust, scalable solutions that don’t compromise security or decentralization by allocating resources more efficiently and improving transaction capabilities.

Vertical scaling offers a promising future, revolutionizing the way blockchain technology is applied across a wide range of sectors and paving the way for more efficient and user-friendly applications.


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