Constraints of Programmable Currencies

EVM and Trustless Computing:

The Ethereum Virtual Machine (EVM) seeks to provide users with trustless computing and storage capabilities. While traditionally relying on consensus among all network nodes, recent advancements in proof techniques have enabled offloading computations to coprocessors. However, this introduces challenges when integrating with traditional payment networks.

Cross-Chain Challenges:

The fragmentation of liquidity across various blockchain networks necessitates the use of bridges for value transfers. Relying on third-party protocols for these reconciliations can limit business opportunities and hinder the seamless provision of services across networks with distinct technological advantages.

The lack of standardization across different blockchain networks leads to asynchronous and proprietary transaction sequencing. This fragmentation, combined with varying block times, computational capabilities, risk profiles, developer tools, applications, and abstraction layers, creates a complex and fragmented ecosystem. Cross-chain communication protocols (CCIPs) often require significant time for transaction finality, resulting in fast settlement but delayed confirmation. This contrasts with traditional payment systems that prioritize finality but may have longer settlement times.